BlackSky Announces Pricing of Upsized $40 Million Public Offering of Common Stock

Rhea-AI Summary

BlackSky Technology Inc. (NYSE: BKSY) has announced the pricing of an upsized public offering of 10,000,000 shares of its Class A common stock at $4.00 per share. The company expects to raise gross proceeds of approximately $40 million before deducting underwriting discounts, commissions, and other expenses. The offering is set to close around September 26, 2024, subject to customary conditions.

BlackSky has also granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares. Oppenheimer & Co. and Lake Street Capital Markets are acting as joint book-running managers for the offering. The offering is being made through a shelf registration statement and prospectus filed with the SEC.

Positive

• Upsized public offering to raise approximately $40 million in gross proceeds
• Potential for additional capital through 30-day option for underwriters to purchase 1,500,000 more shares
• Successful pricing of shares at $4.00 per share

Negative

• Potential dilution of existing shareholders' ownership
• Increased share count may put downward pressure on stock price

Insights

Financial Analyst

BlackSky's $40 million public offering of common stock is a significant move to bolster its financial position. Pricing 10 million shares at $4.00 per share represents a 20% discount to the previous closing price, which is relatively steep but not uncommon for small-cap companies seeking capital.

This capital raise will likely be used to fund operations and growth initiatives, potentially accelerating BlackSky's expansion in the satellite imagery and geospatial intelligence market. However, the dilution effect on existing shareholders is substantial, with the offering increasing the outstanding share count by approximately 8.5%.

The underwriters' option for an additional 1.5 million shares could bring the total raise to $46 million, providing even more liquidity but at the cost of further dilution. Investors should watch for the company's plans on utilizing this capital, as effective deployment could offset the dilutive impact in the long term.

Market Research Analyst

BlackSky's upsized offering signals both opportunity and challenges in the Earth observation market. The company's ability to raise capital in the current economic climate suggests investor confidence in the geospatial intelligence sector's growth potential. However, the need for additional funding may indicate cash burn concerns or ambitious expansion plans requiring significant investment.

The timing of this offering, amidst global geopolitical tensions and increasing demand for real-time intelligence, could be strategic. BlackSky might be positioning itself to capture a larger market share by enhancing its satellite constellation or improving its AI-driven analytics capabilities. Investors should monitor how this capital infusion translates into competitive advantages and revenue growth in the coming quarters.

The market's reaction to this dilutive event will be important to watch, as it will reflect investor sentiment on BlackSky's long-term prospects versus short-term dilution concerns.

HERNDON, Va.--(BUSINESS WIRE)-- BlackSky Technology Inc. (NYSE: BKSY) today announced the pricing of an 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. All of the shares in the offering are being sold by BlackSky. The gross proceeds to BlackSky from the offering, before deducting the underwriting discounts and commissions and other offering expenses, are expected to be approximately $40 million. The offering is expected to close on or about September 26, 2024, subject to customary closing conditions. In addition, BlackSky has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of its common stock in the underwritten public offering.

Oppenheimer & Co. and Lake Street Capital Markets are acting 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 will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary 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 final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and available on the SEC’s website at www.SEC.gov. A copy of the final prospectus supplement and the 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 shall 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, including, without limitation, stock market conditions, our ability to satisfy the closing conditions in the underwriting agreement, and our ability to complete the offering, 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/20240925216659/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 is BlackSky (BKSY) offering in its public offering?

BlackSky (BKSY) is offering 10,000,000 shares of its Class A common stock in the public offering.

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

The price per share for BlackSky's (BKSY) public offering is $4.00.

When is the expected closing date for BlackSky's (BKSY) public offering?

The expected closing date for BlackSky's (BKSY) public offering is on or about September 26, 2024, subject to customary closing conditions.

How much does BlackSky (BKSY) expect to raise from the public offering?

BlackSky (BKSY) expects to raise gross proceeds of approximately $40 million from the public offering, before deducting underwriting discounts and commissions and other offering expenses.

Who are the joint book-running managers for BlackSky's (BKSY) public offering?

Oppenheimer & Co. and Lake Street Capital Markets are acting as joint book-running managers for BlackSky's (BKSY) public offering.