BlackSky Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

BlackSky Technology Inc. (NYSE: BKSY) has successfully closed its previously announced underwritten public offering of 10,000,000 shares of Class A common stock at $4.00 per share on September 26, 2024. The underwriters fully exercised their option to purchase an additional 1,500,000 shares on September 27, 2024. The company received total gross proceeds of approximately $46 million from this offering, before deducting underwriting discounts, commissions, and estimated offering expenses.

Oppenheimer & Co. and Lake Street Capital Markets acted as joint book-running managers for the offering. The offering was made through a shelf registration statement on Form S-3 (File No. 333-267889) that became effective on December 15, 2022. A prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC.

Positive

• Successfully raised approximately $46 million in gross proceeds
• Underwriters fully exercised their option to purchase additional shares
• Increased capital to potentially fund company growth and operations

Negative

• Potential dilution of existing shareholders' ownership
• Increased number of outstanding shares may impact stock price

Insights

Financial Analyst

BlackSky's public offering of 11.5 million shares at $4.00 per share, raising gross proceeds of approximately $46 million, is a significant capital injection for the company. This move strengthens their balance sheet and provides additional liquidity for operations and potential growth initiatives.

The full exercise of the underwriters' option to purchase additional shares indicates strong demand for BlackSky's stock, which is a positive signal. However, the dilution effect on existing shareholders should be considered, as the offering increases the total number of outstanding shares by about 10%.

For a company with a market cap of around $88 million, this capital raise is substantial and could be transformative. Investors should watch closely how BlackSky deploys this capital, as it could potentially accelerate their growth strategy or improve their competitive position in the satellite imagery and geospatial intelligence market.

Market Research Analyst

The successful completion of BlackSky's public offering demonstrates investor confidence in the company's future prospects within the rapidly evolving space technology sector. The $46 million raised provides BlackSky with a significant war chest to potentially expand its satellite constellation, enhance its AI-driven analytics capabilities, or pursue strategic acquisitions.

The pricing of $4.00 per share is important to analyze in the context of the company's recent trading range and future growth expectations. This capital infusion could be a game-changer for BlackSky, potentially allowing them to scale operations and capture a larger market share in the competitive earth observation industry.

Investors should monitor how this additional funding impacts BlackSky's burn rate, revenue growth trajectory and ability to secure new government or commercial contracts. The company's execution in the coming quarters will be critical in justifying this capital raise and potentially driving long-term shareholder value.

HERNDON, Va.--(BUSINESS WIRE)-- BlackSky Technology Inc. (NYSE: BKSY) today announced the closing on September 26, 2024 of its previously announced underwritten public offering of 10,000,000 shares of its Class A common stock (“common stock”) at a price to the public of $4.00 per share. In addition, on September 27, 2024, the underwriters fully exercised their option to purchase an additional 1,500,000 shares of common stock. BlackSky received total gross proceeds of approximately $46 million from this offering, before deducting the underwriting discounts and commissions and estimated offering expenses payable by BlackSky. All of the shares in the offering were sold by BlackSky.

Oppenheimer & Co. and Lake Street Capital Markets acted as joint book-running managers for the offering.

A shelf registration statement on Form S-3 (File No. 333-267889) relating to the shares was previously filed with the Securities and Exchange Commission (the “SEC”) and became effective on December 15, 2022. The offering was made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at www.SEC.gov. A copy of the prospectus supplement and accompanying prospectus, when available, may be obtained by contacting: Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com; or Lake Street Capital Markets, LLC, Attention: Syndicate Department, 920 Second Avenue South, Suite 700, Minneapolis, MN 55402, by telephone at (612) 326-1305, or by email at syndicate@lakestreetcm.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BlackSky

BlackSky is a real-time, space-based intelligence company that delivers on-demand, high-frequency imagery, analytics, and high-frequency monitoring of the most critical and strategic locations, economic assets, and events in the world. BlackSky owns and operates one of the industry’s most advanced, purpose-built commercial, real-time intelligence systems that combines the power of the BlackSky Spectra^® tasking and analytics software platform and our proprietary low earth orbit satellite constellation.

With BlackSky, customers can see, understand and anticipate changes for a decisive strategic advantage at the tactical edge, and act not just fast, but first. BlackSky is trusted by some of the most demanding U.S. and international government agencies, commercial businesses, and organizations around the world. BlackSky is headquartered in Herndon, VA, and is publicly traded on the New York Stock Exchange as BKSY.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws with respect to BlackSky. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events or results to differ materially from those expressed or implied by the forward-looking statements in this document. If any of these risks materialize or underlying assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect our expectations, plans, or forecasts of future events and views as of the date of this communication, and subsequent events and developments could cause our assessments to change. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Additional risks and uncertainties are identified and discussed in BlackSky’s disclosure materials filed from time to time with the SEC which are available at the SEC’s website at www.SEC.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926179729/en/

Investor Contact

BlackSky Technology Inc.

Aly Bonilla

VP, Investor Relations

abonilla@blacksky.com

571-591-2864

Media Contact

BlackSky Technology Inc.

Pauly Cabellon

Senior Director, External Communications

pcabellon@blacksky.com

571-591-2865

Source: BlackSky Technology Inc.

FAQ

How many shares did BlackSky (BKSY) offer in its public offering?

BlackSky offered 10,000,000 shares of Class A common stock, with an additional 1,500,000 shares purchased by underwriters through their fully exercised option, totaling 11,500,000 shares.

What was the price per share for BlackSky's (BKSY) public offering?

The price to the public for BlackSky's offering was $4.00 per share of Class A common stock.

How much did BlackSky (BKSY) raise in gross proceeds from the offering?

BlackSky received total gross proceeds of approximately $46 million from this offering, before deducting underwriting discounts, commissions, and estimated offering expenses.

When did BlackSky (BKSY) close its public offering of common stock?

BlackSky closed its public offering of common stock on September 26, 2024, with the underwriters exercising their additional share option on September 27, 2024.