Sidus Space completes $7.5 million public offering of common stock

CAPE CANAVERAL, Fla. - Sidus Space, Inc. (NASDAQ:SIDU), currently valued at $21.4 million in market capitalization, has closed its previously announced public offering of 7,143,000 shares of Class A common stock at $1.05 per share, raising approximately $7.5 million in gross proceeds before deducting placement agent fees and offering expenses. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, though it has been rapidly burning through its cash reserves.

The space and defense technology company plans to use the net proceeds for sales and marketing, operational costs, product development, manufacturing expansion, and working capital. This capital raise comes as the company’s stock has experienced significant pressure, declining 76% year-to-date and currently trading near its 52-week low of $1.08.

ThinkEquity acted as the sole placement agent for the best-efforts offering, which was conducted under a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission in July 2023 and declared effective in August 2023.

"This offering, coupled with our recently announced launch of our dual-use Fortis VPX product line with integrated AI/ML processing, positions Sidus to focus on significant growth opportunities," said Carol Craig, Chief Executive Officer of Sidus Space.

Adarsh Parekh, Chief Financial Officer, added that the additional capital "bolsters our liquidity, allowing our team to fully focus on the execution of our strategy and high growth initiatives."

Sidus Space describes itself as providing flexible, cost-effective solutions to government, defense, intelligence, and commercial companies. The company operates a 35,000-square-foot manufacturing facility on Florida’s Space Coast. While analysts anticipate sales growth this year, InvestingPro analysis reveals challenging fundamentals, including negative gross profit margins of -82.4% and a weak overall financial health score. For deeper insights into Sidus Space’s financial position and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

The securities were offered pursuant to a final prospectus supplement and accompanying prospectus related to the offering filed with the SEC, according to the press release statement.

In other recent news, Sidus Space Inc. announced the pricing of a public offering of 7,143,000 shares of its Class A common stock at $1.05 per share, aiming to raise approximately $7.5 million in gross proceeds. The company plans to use the proceeds for various purposes, including sales and marketing initiatives, operational costs, and product development. ThinkEquity is serving as the sole placement agent for the offering. In another development, Sidus Space unveiled its new LunarLizzie satellite platform, designed for lunar and cislunar missions. The platform is engineered to support payloads up to 800kg and features advanced technologies such as LiDAR and AI-powered autonomous navigation. Additionally, Sidus Space appointed Tiffany Norwood to its Board of Directors, bringing her extensive experience in entrepreneurship and technology. Norwood’s background includes raising significant funds for WorldSpace, a pioneer in global digital radio platforms. These developments highlight Sidus Space’s ongoing efforts to expand its technological capabilities and strengthen its leadership team.

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