Neptune Digital Assets (NDA.V) on Friday provided an update regarding its investment in SpaceX(SPCX) following SpaceX's "successful" initial public offering.
Neptune expects to hold approximately 163,000 shares of SpaceX following the completion of the conversion of its xAI investment into SpaceX shares and prior to the associated distribution process, said the company, adding that its average acquisition cost is approximately US$20 per share before any applicable fees, carried interest, expenses, taxes, and distribution adjustments.
"Based on SpaceX's initial public offering price of US$135 per share, the gross value of the underlying SpaceX shares attributable to Neptune's investments would be approximately US$22 million (C$31 million)," said the company.
The company currently plans to remain a long-term shareholder and will continue to evaluate its investment strategy in the context of market conditions, liquidity requirements, and opportunities to maximize shareholder value, it stated.
"The most valuable companies are those that lay the foundation for entirely new industries. At Neptune, we continue to seek out businesses and assets that are strategic, enduring and which become ever more difficult to replicate," said chief executive Cale Moodie. "SpaceX has invested over two decades in forging world-class launch infrastructure, unparalleled engineering capabilities, and a transformative global satellite network, creating a formidable competitive moat. As the demands of AI, data, and global connectivity accelerate, we believe these assets will only grow in strategic importance and long-term value."
The company's shares were last seen down C$0.03 to C$0.92 on the TSX Venture Exchange.