What happens when you smoosh together a SPAC and a space tourism company?
A SPAC is a “special purpose acquisition company,” a public entity that is designed to buy a company that is, say, private, taking it public in the process.
Investors put money into a SPAC when it goes public, and then the entity — a formless slug of cash in search of something material to glom onto — buys a chunk of another company that has yet to go public itself.
Indeed, here’s how CNN describes the current market for space tourism, through the lens of Virgin Galactic, a company we’ll come back to:
The combined entity now trades under the symbol $SPCE and is a public company.
— in a space tourism company.