Momentus offers new conversion price for notes

Momentus Inc. (NASDAQ:MNTS), a company specializing in guided missiles and space vehicles with a market capitalization of $9.4 million, has announced changes to its convertible promissory notes terms with Space Infrastructures Ventures, LLC (SIV). According to InvestingPro data, the company’s stock has experienced significant volatility, falling over 72% in the past year. According to the filing with the Securities and Exchange Commission on Monday, Momentus’ board has authorized a new conversion price for a portion of its outstanding notes.

The board approved a reduced conversion price of $1.77 per share for 112,576 shares of its Class A common stock under the July 2024 Note, effective Monday, and up to 275,000 shares under the October 2024 Note from May 19, 2025, to June 1, 2025. This decision comes as InvestingPro analysis shows the company faces short-term liquidity challenges, with a current ratio of 0.4. This decision follows a previous offer to SIV on March 3, 2025, with a reduced conversion price of $2.12 per share for the July 2024 Note. The current conversion price for the October 2024 Note stands at $7.4088.

Momentus, headquartered in San Jose, California, is incorporated in Delaware and has its common stock and warrants listed on The Nasdaq Stock Market under the trading symbols MNTS and MNTSW, respectively. The company, which was formerly known as Stable Road Acquisition Corp., has not indicated any communications pursuant to Rules 425, 14a-12, 14d-2(b), or 13e-4(c) under the Securities Act and Exchange Act in this filing.

This strategic move by Momentus’ board is reflected in the company’s latest SEC filing and is part of the company’s financial management activities. The information is based on a press release statement. Investors should note that Momentus is scheduled to report its next earnings on May 21, 2025. InvestingPro subscribers have access to 10 additional key insights about Momentus’s financial health and market position.

In other recent news, Momentus Inc. has announced several key developments impacting its financial and strategic positioning. The company reported that it believes it has met the minimum stockholders’ equity requirement for continued listing on The Nasdaq Capital Market, following a master services agreement with Velo3D, Inc. This strategic move involved issuing shares of Class A common stock and non-voting Series A Convertible Preferred Stock to Velo3D, which Momentus believes has raised its stockholders’ equity to at least $2.5 million, though formal confirmation from Nasdaq is pending. Additionally, Momentus entered into a warrant inducement agreement resulting in the cash exercise of existing warrants, bringing in approximately $2.07 million in gross proceeds, with new inducement warrants issued for additional shares.

Momentus has also made a significant adjustment to the conversion price on a secured convertible promissory note with Space Infrastructures Ventures, LLC, lowering it from $7.40712 to $2.12 per share. This change may influence potential dilution for existing shareholders if the note is converted into equity. In another strategic initiative, Momentus has partnered with Solstar Space Company to trial space-based Wi-Fi connectivity, aiming to provide continuous on-demand communication capabilities for spacecraft in orbit. This collaboration is set to demonstrate its technology aboard a SpaceX Transporter mission in early 2026.

These developments highlight Momentus’s ongoing efforts to strengthen its financial foundation and explore innovative solutions in the aerospace sector. The company has engaged A.G.P./Alliance Global Partners (NYSE:GLP) as a financial advisor for its recent transactions, emphasizing its commitment to strategic growth. Investors and market watchers are closely observing these moves, as they may significantly impact Momentus’s market strategy and future operations.

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