BlackSky Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

BlackSky Technology Inc. (NYSE: BKSY) has announced its intention to offer shares of its Class A common stock in an underwritten public offering. The company plans to grant underwriters a 30-day option to purchase up to an additional 15% of the offered shares. Oppenheimer & Co. and Lake Street Capital Markets are acting as joint book-running managers for the offering.

The offering is subject to market conditions, and there is no guarantee of its completion or specific terms. A shelf registration statement related to the shares has been filed with the SEC and became effective on December 15, 2022. The offering will be made through a written prospectus and prospectus supplement, which are available on the SEC's website.

Positive

• Potential to raise capital for company operations or expansion
• Underwritten public offering may provide more stability compared to other funding methods
• 30-day option for underwriters to purchase additional shares could increase capital raised

Negative

• Potential dilution of existing shareholders' ownership
• Stock price may be negatively impacted due to increased supply of shares
• Uncertainty regarding the size and terms of the offering

Insights

Financial Analyst

BlackSky's proposed public offering of common stock is a significant move that could have substantial implications for the company's financial position and investor sentiment. This capital-raising effort suggests the company may be seeking funds for expansion, debt reduction, or other strategic initiatives. The offering's size and pricing will be important factors to watch, as they will determine the level of dilution for existing shareholders and the amount of capital raised. The involvement of Oppenheimer & Co. and Lake Street Capital Markets as joint book-running managers lends credibility to the offering. However, investors should be cautious, as the additional shares could put downward pressure on the stock price in the short term. The market's reaction to this announcement and the eventual pricing of the offering will be key indicators of investor confidence in BlackSky's future prospects and current valuation.

Legal Expert

The proposed public offering by BlackSky is being conducted under a shelf registration statement that became effective in December 2022, which streamlines the process and indicates the company's foresight in preparing for potential capital needs. The inclusion of a 30-day option for underwriters to purchase additional shares (up to 15%) is a standard practice that provides flexibility in case of high demand. It's important to note that the offering is subject to market conditions and there's no guarantee of completion or final terms. The company's compliance with SEC regulations, including the filing of a preliminary prospectus supplement, demonstrates adherence to legal requirements. Investors should carefully review the prospectus and supplement for detailed information on risks and use of proceeds before making investment decisions. The disclaimer at the end of the announcement is a standard legal protection, emphasizing that this press release does not constitute an offer to sell or solicitation to buy securities.

HERNDON, Va.--(BUSINESS WIRE)-- BlackSky Technology Inc. (NYSE: BKSY) today announced that it intends to offer shares of its Class A common stock (“common stock”) for sale in an underwritten public offering. All of the shares in the offering are being offered by BlackSky. BlackSky intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the number of shares of its common stock in the underwritten public offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the 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 copy of the preliminary 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 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 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/20240924170236/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

What is the purpose of BlackSky's (BKSY) proposed public offering?

BlackSky (BKSY) is proposing a public offering of its Class A common stock to raise capital, potentially for company operations or expansion. The specific use of funds is not detailed in the press release.

Who are the underwriters 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.

When did BlackSky's (BKSY) shelf registration statement become effective?

BlackSky's (BKSY) shelf registration statement on Form S-3 became effective on December 15, 2022.

What option is BlackSky (BKSY) granting to the underwriters in this offering?

BlackSky (BKSY) intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the number of shares offered in the public offering.