$RKLB: Insiders are incentivized to get the share price to $20 within 90-160 days

So I was having a look at the $RKLB  S-4/A form for the merger and came across the following statement: In addition to the above consideration, if the closing price of New Rocket Lab Common Stock is equal to or greater than $20.00 for a period of at least 20 trading days out of 30 consecutive trading days during the period commencing on the 90th day following the Closing and ending on the 180th day following the Closing, the Rocket Lab Holders (as defined in the accompanying proxy statement/prospectus) will be entitled to receive additional shares of New Rocket Lab Common Stock equal to 8% of the Aggregate Share Consideration (as defined below) (computed without the deduction for the Management Redemption Shares/Options). (The "Rocket Lab Holders" means the people who owned it when it was private) This means two things: -Insiders now have twice the incentive to drive the stock price to the moon. -If this happens, people who bought it on the open market will be somewhat diluted. It stands to reason that any major announcements/catalysts would happen between late November and late January, as this is most likely to get the insiders their bonus. What else might be happening in Q4? Oh, maybe literally going to the moon. Certainly as shareholders, we don't want to be diluted, but it's better to have a small piece of a big pie than vice-versa. Future prospects The moon is 239,000 miles from the earth, and the insiders have signaled that this corresponds to a $20 share price. Rocket Lab has also announced it is going to Mars, which is 38.6 million miles away. This means that the share price will be 38,600,000/239,000 * $20 = $3218. TL;DR: $RKLB to the moon between November and January 

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Original Post

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Randomusername8347

Sep 1, 2021

52.00%

Change % Since Posting

10.13

Price When Posted

5.27

Change Since Posting

RKLB

Rocket Lab USA Inc

15.39

1.07
7.47%
Current Price

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$RKLB: Insiders are incentivized to get the share price to $20 within 90-160 days

bullish

So I was having a look at the $RKLB  S-4/A form for the merger and came across the following statement:

In addition to the above consideration, if the closing price of New Rocket Lab Common Stock is equal to or greater than $20.00 for a period of at least 20 trading days out of 30 consecutive trading days during the period commencing on the 90th day following the Closing and ending on the 180th day following the Closing, the Rocket Lab Holders (as defined in the accompanying proxy statement/prospectus) will be entitled to receive additional shares of New Rocket Lab Common Stock equal to 8% of the Aggregate Share Consideration (as defined below) (computed without the deduction for the Management Redemption Shares/Options).

(The "Rocket Lab Holders" means the people who owned it when it was private)

This means two things:

-Insiders now have twice the incentive to drive the stock price to the moon.

-If this happens, people who bought it on the open market will be somewhat diluted.

It stands to reason that any major announcements/catalysts would happen between late November and late January, as this is most likely to get the insiders their bonus. What else might be happening in Q4? Oh, maybe literally going to the moon. Certainly as shareholders, we don't want to be diluted, but it's better to have a small piece of a big pie than vice-versa.

Future prospects

The moon is 239,000 miles from the earth, and the insiders have signaled that this corresponds to a $20 share price. Rocket Lab has also announced it is going to Mars, which is 38.6 million miles away. This means that the share price will be 38,600,000/239,000 * $20 = $3218.

TL;DR: $RKLB to the moon between November and January 

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1 min

20.00

Target Price

9/ 10

Confidence

2-6 Months

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