Satellogic Announces Closing of $20 Million Registered Direct Offering of Class A Common Stock

Rhea-AI Summary

Satellogic Inc. (NASDAQ: SATL) has successfully closed a registered direct offering of 6,451,612 shares of Class A Common Stock at $3.10 per share, raising approximately $20 million in gross proceeds. The offering was conducted with an institutional investor through a definitive share purchase agreement dated April 15, 2025, with Cantor Fitzgerald & Co. serving as the exclusive placement agent.

The company plans to utilize the net proceeds for general corporate purposes. This financing follows their recently announced $30 million AI-first constellation contract and strategic realignment as a U.S. company. The offering was made through a shelf registration statement on Form S-3 previously filed with and declared effective by the SEC.

Positive

• Secured $20 million in additional funding through stock offering
• Recently won $30 million AI-first constellation contract
• Strategic realignment as a U.S. company completed
• Strengthened liquidity position for operational execution

Negative

• Share dilution through issuance of 6,451,612 new shares
• Offering price of $3.10 indicates potential discount to market price

Insights

Financial Analyst

Satellogic secured vital $20M funding at significant discount, boosting liquidity but diluting shareholders by approximately 6.7%.

Satellogic's $20 million registered direct offering represents a strategic capital infusion that comes at a critical time for the Earth observation company. The offering price of $3.10 per share reflects a 20.7% discount to the current trading price of $3.91, which is steeper than typical secondary offerings and suggests urgency in securing these funds.

The transaction introduces 6,451,612 new shares into the market, creating approximately 6.7% dilution based on the company's current market capitalization of $378 million. While dilution is a concern for existing shareholders, the enhanced liquidity position provides Satellogic operational runway at a time when capital markets have been challenging for space technology companies.

Particularly noteworthy is management's strategic emphasis on a recently secured $30 million contract for their AI-first constellation alongside this capital raise. This creates a more favorable narrative around the company's near-term revenue prospects, potentially offsetting negative perception around the equity raise.

The stated use of proceeds for "general corporate purposes" lacks specificity and raises questions about immediate capital allocation plans. This vague language typically indicates funding will support ongoing operations rather than specific growth initiatives, suggesting the company needed to shore up its balance sheet.

The company's "strategic realignment as a U.S. company" mentioned by the CEO likely aims to position Satellogic for increased access to government and defense contracts, where Earth observation data commands premium pricing and more stable revenue streams.

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Satellogic Inc. (NASDAQ: SATL), a leader in high-resolution Earth observation data, announced today that it has closed the purchase and sale of 6,451,612 shares of the Company’s Class A Common Stock at a purchase price of $3.10 in a registered direct offering pursuant to a definitive share purchase agreement entered into with a certain institutional investor on April 15, 2025.

Cantor Fitzgerald & Co. acted as the exclusive placement agent for the offering.

The gross proceeds from the offering are expected to be approximately $20 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering for general corporate purposes.

“This offering, coupled with our recently announced $30 million low latency, near-daily AI-first constellation contract, and our strategic realignment as a U.S. company, positions Satellogic to focus on significant growth opportunities, underscoring the value of our data insights and technology,” said Emiliano Kargieman, the Company’s Chief Executive Officer.

Rick Dunn, Chief Financial Officer, added, “the additional $20 million bolsters our liquidity, allowing our team to fully focus on the operational execution of our strategy and high growth initiatives that will drive real outcomes for our customers.”

The shares of Class A Common Stock issued in the offering were offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-283719) previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on March 31, 2025. The offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement, relating to the offering that was filed with the SEC on April 15, 2025. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained on the SEC’s website at http://www.sec.gov or by contacting Cantor Fitzgerald & Co. at Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy Class A Common Stock, nor shall there be any sale of Class A Common Stock 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 Satellogic

Founded in 2010 by Emiliano Kargieman and Gerardo Richarte, Satellogic (NASDAQ: SATL) is the first vertically integrated geospatial company, driving real outcomes with planetary-scale insights. Satellogic is creating and continuously enhancing the first scalable, fully automated EO platform with the ability to remap the entire planet at both high-frequency and high-resolution, providing accessible and affordable solutions for customers.

Satellogic’s mission is to democratize access to geospatial data through its information platform of high-resolution images to help solve the world’s most pressing problems including climate change, energy supply, and food security. Using its patented Earth imaging technology, Satellogic unlocks the power of EO to deliver high-quality, planetary insights at the lowest cost in the industry.

With more than a decade of experience in space, Satellogic has proven technology and a strong track record of delivering satellites to orbit and high-resolution data to customers at the right price point.

To learn more, please visit: http://www.satellogic.com

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intends”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on Satellogic’s current expectations and beliefs concerning future developments and their potential effects on Satellogic and include statements concerning Satellogic’s registered direct offering. 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. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve, and must not be relied on by an investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Satellogic. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to generate revenue as expected, (ii) our ability to effectively market and sell our EO services and to convert contracted revenues and our pipeline of potential contracts into actual revenues, (iii) risks related to the secured convertible notes, (iv) the potential loss of one or more of our largest customers, (v) the considerable time and expense related to our sales efforts and the length and unpredictability of our sales cycle, (vi) risks and uncertainties associated with defense-related contracts, (vii) risk related to our pricing structure, (viii) our ability to scale production of our satellites as planned, (ix) unforeseen risks, challenges and uncertainties related to our expansion into new business lines, (x) our dependence on third parties to transport and launch our satellites into space, (xi) our reliance on third-party vendors and manufacturers to build and provide certain satellite components, products, or services, (xii) our dependence on ground station and cloud-based computing infrastructure operated by third parties for value-added services, and any errors, disruption, performance problems, or failure in their or our operational infrastructure, (xiii) risk related to certain minimum service requirements in our customer contracts, (xiv) market acceptance of our EO services and our dependence upon our ability to keep pace with the latest technological advances, (xv) competition for EO services, (xvi) challenges with international operations or unexpected changes to the regulatory environment in certain markets, (xvii) unknown defects or errors in our products, (xviii) risk related to the capital-intensive nature of our business and our ability to raise adequate capital to finance our business strategies, (xix) substantial doubt about our ability to continue as a going concern, (xx) uncertainties beyond our control related to the production, launch, commissioning, and/or operation of our satellites and related ground systems, software and analytic technologies, (xxi) the failure of the market for EO services to achieve the growth potential we expect, (xxii) risks related to our satellites and related equipment becoming impaired, (xxiii) risks related to the failure of our satellites to operate as intended, (xxiv) production and launch delays, launch failures, and damage or destruction to our satellites during launch and (xxv) the impact of natural disasters, unusual or prolonged unfavorable weather conditions, epidemic outbreaks, terrorist acts and geopolitical events (including the ongoing conflicts between Russia and Ukraine, in the Gaza Strip and the Red Sea region) on our business and satellite launch schedules. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Satellogic’s Annual Report on Form 10-K and other documents filed or to be filed by Satellogic from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. 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 Satellogic 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. Satellogic can give no assurance that it will achieve its expectations.

Media Contacts

Satellogic, Inc.
Ryan Driver, VP of Strategy & Corporate Development
pr@satellogic.com

FAQ

How much did Satellogic (SATL) raise in their April 2025 direct offering?

Satellogic raised approximately $20 million in gross proceeds through a registered direct offering of 6,451,612 shares at $3.10 per share.

What is the price per share for Satellogic's (SATL) April 2025 stock offering?

The purchase price was set at $3.10 per share for Satellogic's Class A Common Stock offering.

How will Satellogic (SATL) use the proceeds from their $20M offering?

Satellogic intends to use the net proceeds from the offering for general corporate purposes.

What recent contract did Satellogic (SATL) announce prior to this offering?

Satellogic recently announced a $30 million low latency, near-daily AI-first constellation contract.