Momentus Announces Closing of $5 Million Offering Priced At-The-Market Under NASDAQ Rules

Rhea-AI Summary

Momentus (NASDAQ: MNTS) has closed its previously announced 'reasonable best efforts' offering with a single institutional investor. The offering includes 800,000 shares of common stock and warrants to purchase up to 800,000 additional shares at a combined price of $6.20 per share and accompanying warrant, raising approximately $5 million in gross proceeds.

The warrants have an exercise price of $6.08 per share, are immediately exercisable, and will expire in five years. The company plans to use the net proceeds for general corporate purposes, including debt repayment. A.G.P./Alliance Global Partners served as the sole placement agent for the offering.

Positive

• Secured $5 million in immediate funding
• Potential for additional $4.86 million if warrants are fully exercised
• Proceeds will help reduce debt burden

Negative

• Dilutive offering for existing shareholders
• Below-market pricing indicates weak negotiating position
• Need for funding suggests cash flow concerns

Insights

Financial Analyst

This $5 million offering represents a critical but potentially dilutive capital raise for Momentus. The pricing at $6.20 per share with accompanying warrants at $6.08 exercise price indicates significant pressure on the company's valuation, considering its micro-cap status with a market cap of just $17.9 million. The inclusion of warrants for an additional 800,000 shares could lead to further dilution if exercised, though it provides potential upside participation for the institutional investor.

The immediate use of proceeds for debt repayment and general corporate purposes suggests urgent working capital needs. With a micro-cap valuation, this financing, while necessary, comes at a high cost to existing shareholders. The single institutional investor participation, rather than a broader offering, may indicate institutional interest or urgency in securing funding. The at-the-market pricing mechanism reflects current market conditions and compliance with Nasdaq rules, though it offers little premium to existing shareholders.

Key implications: While the funding provides immediate liquidity, it represents approximately 28% of the company's market cap, signaling potential concerns about the company's financial position and future capital needs in the capital-intensive space infrastructure sector.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Momentus Inc. (NASDAQ: MNTS) (“Momentus” or the “Company”), a U.S. commercial space company that offers satellite buses, transportation, and other in-space infrastructure services, today announced the closing of its previously announced “reasonable best efforts” offering with a single institutional investor for the purchase and sale of 800,000 shares of common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to 800,000 shares of common stock at a combined offering price of $6.20 per share and accompanying warrant, priced at-the-market under Nasdaq rules (the “Offering”). The Company received aggregate gross proceeds of approximately $5 million, before deducting placement agent fees and other Offering expenses, and assuming no exercise of the warrants. The warrants have an exercise price of $6.08 per share, are exercisable immediately and will expire five years from the issuance date.

The Company intends to use the net proceeds from the Offering for general corporate purposes, including repayment of debt.

A.G.P./Alliance Global Partners acted as the sole placement agent for the Offering.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333- 283539) previously filed with the Securities and Exchange Commission (“SEC”) which was declared effective on December 17, 2024. This Offering was made only by means of a prospectus forming part of the effective registration statement. Copies of the preliminary prospectus and the final prospectus relating to the Offering may be obtained on the SEC’s website located at http://www.sec.gov. Electronic copies of the final prospectus relating to the Offering may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

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

About Momentus

Momentus is a U.S. commercial space company that offers commercial satellite buses and in-space infrastructure services including in-space transportation, hosted payloads, and other in-orbit services.

Forward-Looking Statements

This press release contains certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding the expected closing of the Offering, the intended use of proceeds and fulfillment of customary closing conditions. Momentus or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, and are not guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Momentus’ control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to risks and uncertainties included under the heading “Risk Factors” in the Annual Report on Form 10-K filed by the Company on June 6, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at https://momentus.space. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218419541/en/

Investors: investors@momentus.space

Media: press@momentus.space

Source: Momentus Inc.

FAQ

How much did Momentus (MNTS) raise in their December 2024 offering?

Momentus raised approximately $5 million in gross proceeds through an offering of 800,000 shares and warrants, priced at $6.20 per share and accompanying warrant.

What is the exercise price of the MNTS warrants issued in December 2024?

The warrants have an exercise price of $6.08 per share and will expire five years from the issuance date.

How will Momentus (MNTS) use the proceeds from their December 2024 offering?

Momentus intends to use the net proceeds for general corporate purposes, including repayment of debt.

How many warrants were included in the MNTS December 2024 offering?

The offering included warrants to purchase up to 800,000 shares of common stock.

Who was the placement agent for the MNTS December 2024 offering?

A.G.P./Alliance Global Partners acted as the sole placement agent for the offering.