Innovative Rocket Technologies Inc (iRocket), a small launch startup based in New York, plans to go public through a merger with BPGC Acquisition Corp, a special purpose acquisition company (SPAC).

The deal, expected to close by the fourth quarter of 2025, will value iRocket at US$400 million.

BPGC Acquisition Corp, previously known as Ross Acquisition Corp II, has encountered financial difficulties.

After raising US$345 million in its March 2021 IPO, the SPAC returned most funds to shareholders by September 2024.

Further redemptions have decreased this amount to US$1.6 million, which is 0.5% of the original capital.

Remaining shareholders agreed to extend the acquisition deadline to March 2026 to facilitate a further search for a target.

Founded in 2018, iRocket has yet to test its Shockwave rocket, competing with well-funded rivals like Firefly’s Alpha and Rocket Lab’s Electron.

The startup has secured US$19.8 million in defense contracts but lacks clarity on funding post-merger given BPGC’s depleted trust.