HOUSTON - Intuitive Machines, Inc. (NASDAQ:LUNR, LUNRW), a space exploration and services company with a market capitalization of $2.04 billion, announced the initiation of a public offering of $65 million of its Class A common stock. According to InvestingPro data, the company has demonstrated remarkable momentum with a 469% year-to-date return, though analysts expect challenges in maintaining profitability this year. The offering includes an additional option for underwriters to purchase up to $8.8725 million in shares from the company and $877,500 from a selling stockholder within 30 days. The company maintains a healthy liquidity position with a current ratio of 1.77, indicating sufficient assets to cover short-term obligations.
The offering's completion is subject to market conditions, and there is no certainty regarding its size or terms. Concurrently, on December 2, 2024, Intuitive Machines entered into a private placement agreement with Boryung Corporation, an accredited investor, for the sale of $10 million in Class A common stock at the public offering price.
The proceeds from both the public offering and the private placement are intended for the purchase of common units from Intuitive Machines, LLC, which will be used for general corporate purposes, including operations, research and development, and potential mergers and acquisitions. The company will not receive proceeds from the sale of shares by the selling stockholder if the underwriters exercise their option.
Lead joint book-running managers for the offering include BofA Securities, Cantor, Barclays (LON:BARC), and Stifel, with Roth Capital Partners (WA:CPAP) also serving as a book-running manager. The offering is being made through a prospectus supplement and accompanying prospectus, part of a shelf registration statement effective since April 3, 2024.
Intuitive Machines, known for its lunar access services, made headlines in 2024 by landing the Nova-C class lunar lander, Odysseus, on the Moon, marking the United States' return to the lunar surface since 1972. While the company's revenue grew by 134.5% in the last twelve months, InvestingPro analysis reveals additional insights about the company's financial health and growth prospects, with 13 more exclusive ProTips available to subscribers.
In the press release, Intuitive Machines made forward-looking statements concerning the use of proceeds, the offering's terms, and the private placement's closing conditions. These statements are subject to various risks, including market conditions and the company's reliance on key personnel, competition, customer concentration, and the inherent risks of commercial spaceflight.
The company has a history of losses and has not guaranteed future profitability or cash flow sufficiency, reflected in its negative EBITDA of $38.85 million and modest gross profit margin of 2.88%. Investors seeking deeper insights into LUNR's financial health and growth potential can access comprehensive analysis through InvestingPro's detailed research reports, available for over 1,400 US stocks. The securities offered in the private placement have not been registered under the Securities Act or any state securities laws and will be sold in compliance with registration exemptions.
The information provided is based on a press release statement from Intuitive Machines.
In other recent news, Intuitive Machines has reported significant developments in its financial performance and lunar exploration endeavors. The company's Q3 2024 revenue soared to $58.5 million, marking a 359% increase from the previous year. This surge in revenue is largely attributed to lunar delivery missions and the acquisition of the Near Space Network Services (NSNS) contract, potentially contributing up to $4.82 billion over the next decade.
Benchmark, Canaccord Genuity, and Cantor Fitzgerald have all raised their stock price targets for Intuitive Machines, reflecting confidence in the company's growth trajectory and the success of its commercial model in space infrastructure. The company has also announced its upcoming lunar missions, IM-2, IM-3, and IM-4, as part of a broader strategy to establish a sustained presence on the Moon and provide commercial lunar transportation services.
Intuitive Machines' financial health remains strong, boasting a record cash balance of $89.6 million, a substantial backlog valued at $316.2 million, and zero debt on the books. These recent developments underline Intuitive Machines' commitment to advancing lunar exploration and its potential to capitalize on the growing interest in space-related activities.
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