US Space Company Receives NSA From CFIUS
A U.S. commercial space company announced that it received a draft national security agreement (NSA) from the Committee on Foreign Investment in the U.S., which details requirements and conditions it must meet before CFIUS approves its transaction. The company, Momentus Inc., said it voluntarily notified CFIUS of its proposed business combination with Stable Road Acquisition Corp. but must resolve CFIUS’s “national security concerns” about Momentus’ foreign ownership and control, according to a May 14 news release.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The company said it has taken “swift action in response to government concerns,” including ensuring that the shares of its co-founders can only be voted by U.S. citizens. It’s also allowing CFIUS and other government agencies to “scrutinize” its records and has proposed a mitigation plan to resolve CFIUS concerns.
The NSA will “build” on that mitigation plan, which Momentus shared with CFIUS member agencies in February, said Momentus President Fred Kennedy. “Although there is no assurance that the parties will reach agreement on the final terms of the NSA, if and once finalized, the NSA will document Momentus’ commitments to implement controls to ensure that the national security concerns described by the U.S. government as part of the CFIUS process are resolved.” The company said there will be “further interagency reviews” before the deal can be approved. “We will work to finalize the NSA as quickly as possible,” Kennedy said. The Treasury Department, which chairs CFIUS, didn’t comment.