Momentus secures $2.7 million through warrant exercise agreement

SAN JOSE, Calif. - Momentus Inc. (NASDAQ:MNTS), a U.S. commercial space company specializing in satellite solutions with a current market capitalization of $10.11 million, announced Wednesday it has entered into a warrant inducement agreement with an existing institutional investor that will generate approximately $2.7 million in gross proceeds. According to InvestingPro analysis, the company currently trades near its Fair Value, despite seeing its stock price decline 86% year-to-date.

The agreement involves the immediate exercise of previously issued warrants to purchase a total of 2,431,029 shares of common stock at a reduced exercise price of $1.11 per share. The warrants being exercised include those set to expire in October 2024, December 2024, and February 2025. This capital raise comes as the company faces liquidity challenges, with InvestingPro data showing a current ratio of 0.4, indicating short-term obligations exceed liquid assets.

In exchange for the early exercise, the investor will receive new unregistered warrants to purchase up to 4,862,058 shares of common stock at an exercise price of $1.11. These new warrants will be exercisable once stockholder approval is obtained and will expire five years from the approval date.

Momentus stated it intends to use the proceeds for working capital and general corporate purposes. A.G.P./Alliance Global Partners served as the exclusive financial advisor for the transaction.

The company expects the transaction to close on or about August 14, 2025, subject to customary closing conditions.

The new warrants were offered in a private placement to accredited investors under exemptions from Securities Act registration requirements. Momentus has agreed to file a registration statement with the SEC covering the resale of common stock issuable upon exercise of these new warrants.

Momentus provides satellites, satellite components, and in-space transportation services to government and commercial customers, including hosted payloads and support for in-space assembly. While the company reported an EBITDA loss of $26.58 million in the last twelve months, analysts are projecting revenue growth of 30.22% for the current fiscal year. InvestingPro subscribers can access 12 additional key insights about Momentus’s financial health and growth prospects.

This information is based on a press release statement from the company.

In other recent news, Momentus Inc. has been awarded a contract by NASA to study the deployment of foundational robotics technologies in space. The company has completed initial work under NASA’s Flight Opportunities program and is preparing a proposal for a follow-on mission. Additionally, Momentus has secured another contract from NASA to demonstrate power processing technology for Hall Thrusters in space, leveraging CisLunar Industries’ technologies. In a separate development, Momentus will conduct an on-orbit demonstration for DARPA’s NOM4D program, with a scheduled SpaceX Transporter rideshare mission in February 2026. The company has also announced a partnership with Portal Space Systems to test advanced flight computer technology on its Vigoride 7 Orbital Service Vehicle, set for launch in 2026.

Momentus recently priced a $4 million offering of common stock and warrants, expected to close by July 2025. The offering involves 2,836,880 shares at a combined purchase price of $1.41 per share. These recent developments highlight Momentus’ active involvement in multiple space technology initiatives and collaborations.

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