SAN JOSE, Calif. - Momentus Inc. (NASDAQ: NASDAQ:MNTS), a commercial space company known for its satellite services with an impressive 85.48% gross profit margin but facing cash flow challenges according to InvestingPro data, has announced an offering priced at-the-market under Nasdaq rules. The company is offering 800,000 shares of common stock, along with warrants to purchase an additional 800,000 shares, at a combined price of $6.20 per share and accompanying warrant. The warrants, with an exercise price of $6.08 per share, will be immediately exercisable and are set to expire five years from the date of issuance.
The closing of this offering is expected on or about December 18, 2024, contingent on standard closing conditions. Momentus, currently valued at $14.3 million in market capitalization, anticipates gross proceeds of roughly $5 million before deducting agent fees and other related expenses. There is no indication that the warrants have been exercised at this stage. InvestingPro analysis reveals the company's current ratio of 0.38, indicating potential liquidity challenges.
Momentus has stated its intention to allocate the net proceeds for general corporate purposes, which includes the repayment of debt. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction.
The offering is being conducted in accordance with a registration statement on Form S-1, which the Securities and Exchange Commission (SEC) declared effective on December 17, 2024. Interested investors can access the preliminary prospectus and, once available, the final prospectus through the SEC's website or directly from A.G.P./Alliance Global Partners.
This recent financial move comes as part of Momentus's broader strategy to strengthen its in-space infrastructure services, which encompasses satellite transportation and other orbital services. Despite achieving 30.47% revenue growth in the last twelve months, InvestingPro subscribers can access 12 additional key insights about the company's financial health and growth prospects. While the company has expressed optimism about the offering's expected closure and the intended use of the proceeds, it is important to note that forward-looking statements involve inherent risks and uncertainties.
The information for this article is based on a press release statement from Momentus Inc.
In other recent news, Momentus Inc. has announced a new contract with SpaceX for a rideshare mission slated for early 2026. The mission will transport payloads for the U.S. Department of Defense and various commercial entities to Low-Earth Orbit using Momentus' Vigoride Orbital Service Vehicle. The company also secured a $2 million loan from J.J. Astor & Co., which will be used for general working capital purposes. The loan agreement includes provisions for potential conversion into shares of Momentus Class A Common Stock.
In addition, Momentus entered into amendments to its convertible note agreements with Space Infrastructures Ventures, LLC, allowing the company to access the full $3 million in principal under the October 2024 Convertible Note. The company also announced its selection by the U.S. Defense Department's Space Development Agency to participate in the Hybrid Acquisition for Proliferated Low Earth Orbit program.
Other recent developments include the postponement of a Special Meeting of Stockholders due to lack of quorum and the potential Nasdaq delisting due to non-compliance with listing rules. Momentus projects revenues between $1.0 to $2.0 million and an anticipated net loss between $14.0 and $16.0 million for the first half of 2024.
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