Momentus issues new warrants following warrant exercise

Published 27/03/2025, 11:06
Momentus issues new warrants following warrant exercise

Momentus Inc. (NASDAQ:MNTS), a micro-cap aerospace company with a market capitalization of just $6.14 million, recently entered into a significant agreement with a warrant holder, according to a Form 8-K filed with the Securities and Exchange Commission. On Monday, Momentus inked a warrant inducement agreement that led to the cash exercise of existing warrants for the purchase of 1,071,429 shares of common stock at $1.93 each, matching the closing price on NASDAQ on Sunday. According to InvestingPro analysis, the company currently trades below its Fair Value.

In return for the warrant holder’s cash exercise, Momentus has agreed to issue new inducement warrants. These new warrants allow the holder to purchase up to 2,142,858 shares of common stock, double the number of shares involved in the initial warrant exercise. The transaction, which closed on Monday, is a strategic move by Momentus to strengthen its financial position, which InvestingPro data shows is characterized by a concerning current ratio of 0.38, indicating potential liquidity challenges.

The inducement warrants were issued in a non-public offering, relying on exemptions from registration under the Securities Act of 1933. These exemptions include Section 4(a)(2) for transactions not involving a public offering and Rule 506(c) of Regulation D for sales to accredited investors, as well as corresponding exemptions under state laws.

This development follows the company’s ongoing efforts to solidify its financial foundation and further its goals in the aerospace industry, specifically in the manufacturing of guided missiles, space vehicles, and related parts. Momentus, headquartered in San Jose, California, is known for its innovative approaches in the sector and continues to make strategic decisions to support its growth and operations.

Investors and market watchers will be keeping a close eye on Momentus’s financial maneuvers, as this latest agreement could impact the company’s stock performance and market strategy. The details of the agreement are available in the exhibits attached to Momentus’s Form 8-K filed on March 21, 2025, and this report does not constitute an offer to sell or a solicitation of an offer to buy any securities.

In other recent news, Momentus Inc. has announced several significant developments. The company reported securing $2.07 million from the exercise of warrants, which will be used for general corporate purposes and ongoing operations. Additionally, Momentus has adjusted the conversion price of a secured note from $7.40712 to $2.12 per share, a move that may impact existing shareholders if the note is converted into equity. The company also set the price for a $5 million stock and warrant offering, with plans to use the proceeds to advance its services.

Momentus has expanded its contract with the Defense Advanced Research Projects Agency (DARPA) for the in-orbit assembly of large structures, valued at approximately $3.5 million. This contract is part of the NOM4D program and underscores the company’s progress in developing in-space construction technologies. In a strategic partnership with Solstar Space Company, Momentus aims to trial space-based Wi-Fi, which could revolutionize communication for satellite operators. These developments reflect Momentus’s ongoing efforts to strengthen its financial position and expand its technological capabilities.

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