Momentus meets Nasdaq equity requirement with Velo3D deal

Published 15/04/2025, 14:04
Momentus meets Nasdaq equity requirement with Velo3D deal

In a recent development, Momentus Inc (NASDAQ:MNTS)., a company specializing in guided missiles and space vehicles with a market capitalization of $9.56 million, has announced that it believes it has met the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market. This follows the company’s entry into a master services agreement with Velo3D, Inc., an additive manufacturing solutions provider. According to InvestingPro data, the company’s financial health score currently stands at WEAK, highlighting the importance of this compliance effort.

On January 12, 2025, Momentus was notified by Nasdaq that it had until today, Tuesday, to comply with the minimum $2.5 million stockholders’ equity requirement. In a strategic move on Monday, Momentus issued shares of Class A common stock and non-voting Series A Convertible Preferred Stock to Velo3D in exchange for services related to the design and production of components for spacecraft systems. The stock has shown significant volatility, with a notable 14.29% gain over the past week, though InvestingPro analysis reveals concerning liquidity metrics, including a current ratio of 0.3.

As of the date of this filing, Momentus believes that the transaction has successfully raised its stockholders’ equity to at least $2.5 million, aligning with Nasdaq’s Equity Rule. However, the company is awaiting formal confirmation from Nasdaq regarding its compliance.

It is important to note that even with this positive step, Nasdaq will continue to monitor Momentus to ensure that it maintains compliance with the Equity Rule. Particularly, the company’s financial statements in its next periodic filing will be scrutinized to confirm ongoing adherence to the listing standards.

If Momentus fails to demonstrate compliance in its subsequent financial reports, it may face the risk of being delisted from Nasdaq once again. This information is based on a press release statement from Momentus Inc. and reflects the company’s current status regarding its Nasdaq listing requirements.

In other recent news, Momentus Inc. has been active with several strategic financial maneuvers. The company has secured approximately $2.07 million from the exercise of existing warrants, with shares priced at $1.93 each. In conjunction with this, Momentus issued new inducement warrants for purchasing up to 2,142,858 shares. Additionally, Momentus has adjusted the conversion price of a secured convertible promissory note with Space Infrastructures Ventures, LLC, reducing it from $7.40712 to $2.12 per share. This adjustment remains in effect until all obligations are fulfilled.

Further developments include Momentus setting the price for a $5 million stock and warrant offering, with shares and warrants priced at a combined $3.925 each. The company also announced a strategic partnership with Solstar Space Company to trial space-based Wi-Fi, aiming to enhance spacecraft communication capabilities. A.G.P./Alliance Global Partners (NYSE:GLP) is acting as the financial advisor and placement agent for these transactions. These moves reflect Momentus’s ongoing efforts to strengthen its financial position and expand its service offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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