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Through a partnership with SPAC, Tomorrow.io will expand its weather constellation

Tomorrow.io announced on December 7 that by combining with Pine Technology Acquisition Corporation, the newest SPAC (special purpose acquisition company) to invest in the space industry, it might obtain up to $420 million for its projected network of weather satellites. The meteorological intelligence firm will become a public corporation listed on Nasdaq by the mid of 2022 if this merger goes forward.

The SPAC began trading on the Nasdaq as a shell firm in March, gathering $345 million from the investors to locate an attractive merger target. Regulators as well as the SPAC’s shareholders must yet accept the purchase, which values Boston-centered Tomorrow.io at about $1.2 billion.

The amount of capital Tomorrow.io obtains from the transaction is going to depend on its redemption rate, where the SPAC shareholders desire their money back rather than shares in the amalgamated business. SPAC shareholders determine whether to redeem existing shares and get their money back before this merger is closed, the phase before the combined business starts trading on the public stock exchange.

For space SPAC mergers, redemption rates have been mixed. On the eve of going public, Spire Global experienced a redemption rate of around 90%, while Planet is set to begin trading on the New York Stock Exchange on December 8 with a redemption rate of about 2%. Tomorrow.io plans to raise $75 million from institutional investors in an absolutely dedicated private investment in public equity (PIPE), funding round. National Grid Partners, JetBlue Technology Ventures, Koch Strategic Platforms, and SB Energy Corp., a subsidiary of Japanese internet giant SoftBank, are among the investors.

The money will go toward a constellation of about 32 small satellites that will be fitted with storm-monitoring radars to enhance weather forecasts, according to Tomorrow.io. Astro Digital, based in California, is constructing the first two spacecraft, which will launch late next year.

Tomorrow.io, that renamed from ClimaCell after raising $77 million in March, currently analyzes weather patterns using data from NASA’s Global Precipitation Measurement (GPM) satellite as well as other sources. Ford Motor Company, Uber Technologies, Delta Air Lines, JetBlue Airways, and the National Grid are among Tomorrow.io’s clients.

The Air Force’s AFVentures Strategic Funding Increase initiative, which concentrates on capabilities which might support Department of Defense missions, recently awarded the startup a $19.3 million contract. Tomorrow.io co-founder and Chief Executive Officer Shimon Elkabetz said, “Every business, individual, and government is adopting climate adaptation and mitigation.”

“This is exactly the service that Tomorrow.io offers—a one-of-a-kind software platform that converts weather forecasts into industry-specific insights, allowing customers to plan ahead for the effect of incoming weather on their operations.” Tomorrow.io cited data from the National Centers for Environmental Information (NCEI) of the National Oceanic and Atmospheric Administration (NOAA), which showed that weather events in 2020 cost the US more than $100 billion. If the merger goes through, the startup will be listed on Nasdaq under the ticker TMW.

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