Mikhail Kokorich’s newest interest has put him at odds with the US authorities. It remains to be seen if he will have to part ways with Momentus Space in the face of tough regulations.
Mikhail Kokorich Once Again Locked in a Struggle with Federal Authorities
For a firm about to go public, being told their CEO has to step down from hands-on development with the company’s products will come as bad news indeed. Yet this is the situation that technologist and entrepreneur Mikhail Kokorich faces on the verge of his company Momentus Space going public on NASDAQ to the tune of $1.2 billion. Developing space technology for orbital satellite launches, the business operates within an industry of critical importance to US national interests, meaning that Kokorich, a Russian citizen, must comply with rules forcing him to steer clear of any hands-on activity with the company’s own research and development.
Troubling News for Momentus Space Investors
Actions have been brought forward by the federal government’s Securities and Exchange Commission (SEC) against Momentus Space since it was bought this year by the special-purpose acquisition company (SPAC) of venture firm Stable Road Capital. Both they and Kokorich have yet to make a public statement about the investigation. Their silence will certainly be damning to investors contemplating buying into a company that is currently under the microscope of US authorities. The conflict of interest ruling now means that Kokorich, one of Momentus’ foremost product designers, won’t be able to work on the development or production of the rockets and other technologies crucial to the company’s success. For a CEO whose scientific aptitude has been such a massive draw for their financial status, this ties the business’ hands behind its back going forward.
Not the First of Kokorich’s Legal Problems
Kokorich’s current difficulties regarding the Momentus Space flotation are far from the first of his run-ins with federal authorities in the US. 2019 saw him investigated for violation of export control practices alleged against shell companies that counted him as an investor and/or executive. A year before, the US government forced Kokorich to drop his interests in the space technology firm Astro Digital following a review that found it insufficiently clear of foreign influence, echoing the difficulties that he and Momentus find themselves in today. The Committee for Foreign Investment in the US (CFIUS) form the main obstacle that Kokorich must once again attempt to hurdle if he wants to secure himself a clear path to doing business in the US territories.
Military Interests and Space Technology Collide
Due to the nature of the technology involved in the space industry, designs and patents under development frequently emerge with significant potential applications for the military. The US government’s wider geopolitical interests are brought to bear in deciding who is free to do business on American soil. Kokorich has had some success securing CFIUS approval previously. With his first US company Canopus in a joint 2012 venture with the US company Stellar Exploration, the latter’s involvement helped satisfy authorities that the business was operating under American management. With Momentus, however, Kokorich has more to prove, and the SPAC funding model is under more severe scrutiny from the authorities.
Conclusion: This Time, Kokorich has to Beat the Odds
Mikhail Kokorich has not yet been the subject of prosecution at the hands of the US authorities, and Momentus has been frank with its stockholders about the CEO's current difficulties regarding his exemption from any development activities. Still, without taking some sort of drastic action in the future, Kokorich will not be able to use his own talents to increase Momentus’ stock portfolio. It is this fact, combined with a high degree of regulatory scrutiny, that presents the biggest obstacles to investors taking a chance on the company’s imminent flotation.
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