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Investing.com -- Sidus Space Inc (NASDAQ:SIDU) shares tumbled 46.5% in pre-market trading after the space and defense technology company announced the pricing of a public offering that will significantly dilute existing shareholders.
The company priced a best-efforts 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 before deducting placement agent fees and offering expenses. ThinkEquity is serving as the sole placement agent for the offering.
Sidus Space, which provides technology solutions to government, defense, intelligence, and commercial clients, intends to use the net proceeds for working capital and general corporate purposes. The offering is expected to close on July 29, 2025, subject to customary closing conditions.
The pricing of the offering at $1.05 per share represents a substantial discount to the company’s previous trading price, triggering the sharp sell-off in pre-market trading. This type of dilutive capital raise is often viewed negatively by investors as it reduces the ownership percentage of existing shareholders.
Sidus Space operates in the competitive space technology sector, providing flexible and cost-effective solutions to various clients around the globe. The company trades on the Nasdaq under the ticker SIDU.
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