HERNDON, Va. - BlackSky Technology Inc. (NYSE:BKSY) announced that its Board of Directors has approved a 1-for-8 reverse stock split of its Class A common stock. The decision followed approval from the company's stockholders at the annual meeting held virtually earlier today. The reverse stock split is scheduled to take effect after market close on September 6, 2024, with trading on the New York Stock Exchange to commence on a split-adjusted basis from September 9, 2024.
The reverse stock split will consolidate every eight shares of issued Class A common stock into one new share. This corporate action will not alter the number of authorized shares or the par value per share, which will remain at $0.0001. BlackSky's publicly traded warrants will continue to be traded on the NYSE under the symbol "BKSY.W," without any change to their CUSIP number.
As a result of the reverse stock split, adjustments will be made to the per share exercise price and the number of shares issuable upon the exercise of all outstanding BlackSky options, restricted stock units, and outstanding warrants. Each publicly traded warrant will be exercisable for 1/8th of a share of Class A Common Stock at an exercise price of $92.00 per whole share post-split.
No fractional shares will be issued in connection with the reverse stock split. Instead, stockholders who would have received fractional shares will be compensated with a cash payment based on the closing price per share of the Class A Common Stock on the NYSE on September 6, 2024.
Continental Stock Transfer & Trust Company has been appointed as the transfer and exchange agent for the reverse stock split process. Registered stockholders need not take any action to receive post-reverse split shares. Those owning shares through a broker or other nominee will see their accounts automatically adjusted.
Further details regarding the reverse stock split are available in BlackSky's definitive proxy statement filed with the Securities and Exchange Commission on July 25, 2024, and can be found on the SEC's website and BlackSky's investor relations page.
BlackSky is a real-time, space-based intelligence company that provides high-frequency imagery and analytics. The company operates a proprietary satellite constellation and offers the BlackSky Spectra® tasking and analytics software platform. This announcement is based on a press release statement.
In other recent news, BlackSky Technology has reported a substantial 29% year-over-year revenue growth in the second quarter of 2024, reaching a total of $24.9 million. This increase is primarily attributed to the robust demand for its space-based intelligence solutions, particularly from government customers worldwide. Additionally, BlackSky has secured $40 million in new contracts and extensions, contributing to a positive adjusted EBITDA for the third consecutive quarter.
The company is also preparing for the launch of its next-generation Gen-3 satellites, a move that is expected to further boost its growth. International customer revenues have doubled compared to the previous year, reflecting the company's global reach. Despite some uncertainties, such as the timing of large contracts, BlackSky maintains its full-year 2024 revenue guidance between $102 million and $118 million.
These recent developments indicate a strong trajectory for BlackSky, backed by a diverse portfolio of contracts and a strategic focus on cost management and long-term profitability. As the company continues to expand its market reach and solidify its position in the geospatial intelligence sector, stakeholders can anticipate a promising outlook.
InvestingPro Insights
As BlackSky Technology Inc. (NYSE:BKSY) prepares for its reverse stock split, understanding the company's financial health becomes increasingly pertinent for investors. According to InvestingPro data, BlackSky has a market capitalization of approximately $160.45 million. While the company's revenue showed a notable increase of 43.02% over the last twelve months as of Q2 2024, it is still grappling with challenges. The gross profit margin impressively stands at 69.14%, suggesting that BlackSky is efficient in its cost management relative to its revenue.
Yet, an InvestingPro Tip highlights that BlackSky may face difficulties in making interest payments on its debt, a critical consideration given the reverse stock split's potential impact on the company's capital structure. Additionally, analysts are not expecting BlackSky to be profitable this year, and the company is not paying dividends to shareholders, which could influence investor sentiment and the appeal of holding the stock long-term.
The reverse stock split is a strategic move that may influence the company’s stock liquidity and market perception. Investors should also note that BlackSky's stock has experienced a significant decline over the last six months, dropping by 26.49%. With the next earnings date set for November 7, 2024, stakeholders will be keenly awaiting updates on the company's financial trajectory and the effectiveness of its strategic initiatives.
For a deeper dive into BlackSky's financials and additional InvestingPro Tips, which currently total 11 for the company, investors can visit InvestingPro.
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