Sidus Space Announces Pricing of Public Offering

Rhea-AI Summary

Sidus Space, Inc. (SIDU) announced the pricing of an underwritten public offering of 1,251,700 shares of its Class A common stock at a public offering price of $4.50 per share, resulting in gross proceeds of $5,632,650. The net proceeds will be used for working capital and general corporate purposes. The offering is expected to close on February 1, 2024, and ThinkEquity is acting as the sole book-running manager for the offering.

Insights

Financial Analyst

An underwritten public offering is a significant financial event for any publicly-traded company. Sidus Space, Inc.'s decision to issue over 1.25 million shares, including pre-funded warrants, at $4.50 each, is aimed at raising approximately $5.63 million in gross proceeds. This capital infusion is earmarked for bolstering the company's working capital and supporting general corporate purposes, which could include anything from operational costs to funding new projects or paying off debt.

Investors and stakeholders should consider the dilutive effect of such an offering on existing shares, as it may affect share value. However, the capital raise can also be a positive signal, indicating the company's proactive steps to secure funding for growth or to strengthen its balance sheet. The timing of the offering's closure, expected on February 1, 2024, is also a critical piece of information, as it sets a definitive date for the capital to be available for use.

It is worth noting that the offering is being managed by ThinkEquity, which suggests confidence by the underwriter in Sidus Space's market prospects. The use of a shelf registration statement indicates a pre-planned financing strategy, allowing the company to sell shares over time without the need for multiple separate registration processes. This can be a more efficient way to raise capital as needed.

Market Research Analyst

The space industry is rapidly evolving and companies like Sidus Space, Inc. are at the forefront of this transformation. The market for Data-as-a-Service, which Sidus is involved in, is particularly interesting as it leverages the increasing amounts of data being generated from space-based assets. The decision to raise funds indicates an intent to possibly expand their offerings or invest in technology that could keep them competitive in this sector.

Market trends show a growing demand for space-related services, including satellite data, which can be utilized in various industries such as agriculture, logistics and environmental monitoring. The successful capital raise through this public offering could position Sidus Space to capitalize on these market opportunities. However, potential investors should consider the competitive landscape and the company's ability to execute its business strategy effectively with the newly acquired funds.

Furthermore, the pricing of the offering at $4.50 per share will be a point of comparison against the company's stock performance leading up to and following the close of the offering. It will be important to monitor how the market reacts to this price point and the offering as a whole, as it may influence investor sentiment and stock market dynamics related to Sidus Space.

Securities Legal Expert

From a legal standpoint, the process of conducting a public offering is heavily regulated and Sidus Space, Inc. has adhered to these regulations by filing a shelf registration statement and prospectus with the U.S. Securities and Exchange Commission (SEC). The effectiveness of the registration statement and the subsequent filing of a preliminary prospectus supplement are key legal steps in ensuring transparency and compliance with federal securities laws.

Investors should be aware that the offering is contingent upon customary closing conditions, which typically include regulatory approvals and the absence of any material adverse changes in the company's business. The legal framework also stipulates that the securities cannot be sold in any jurisdiction where such an offering would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

The role of ThinkEquity as the sole book-running manager signifies a structured approach to the offering, with a reputable financial firm overseeing the process. This involvement adds a layer of credibility and may provide some assurance to potential investors regarding the procedural integrity of the offering.

CAPE CANAVERAL, Fla.--(BUSINESS WIRE)-- Sidus Space, Inc. (Nasdaq: SIDU) ("Sidus" or the "Company"), a multi-faceted Space and Data-as-a-Service company, today announced the pricing of an underwritten public offering of 1,251,700 shares of its Class A common stock (or pre-funded warrants (“Pre-funded Warrants”) in lieu thereof). Each share of Class A common stock (or Pre-funded Warrant) is being sold at a public offering price of $4.50 per share (inclusive of the Pre-funded Warrant exercise price) for gross proceeds of $5,632,650, before deducting underwriting discounts and offering expenses. All of the shares of common stock and Pre-funded Warrants are being offered by the Company.

The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.

The offering is expected to close on February 1, 2024, subject to customary closing conditions.

ThinkEquity is acting as sole book-running manager for the offering.

The securities will be offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-273430), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 26, 2023 and declared effective on August 14, 2023. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been filed with the SEC on its website at www.sec.gov. A final prospectus supplement and accompanying prospectus related to the offering will be filed with the SEC and made available on the SEC’s website. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

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

About Sidus Space

Sidus Space (NASDAQ: SIDU) is a Space and Data-as-a-Service satellite company focused on mission-critical hardware manufacturing; multi-disciplinary engineering services; satellite design, production, launch planning, mission operations; and in-orbit support. The Company is in Cape Canaveral, Florida, where it operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility focused on vertically integrated Space-as-a-Service solutions including end-to-end satellite support.

Sidus Space has a mission of Bringing Space Down to Earth™ and a vision of enabling space flight heritage status for new technologies while delivering data and predictive analytics to domestic and global customers. Any corporation, industry, or vertical can start their journey off-planet with Sidus Space’s rapidly scalable, low-cost satellite services, space-based solutions, and testing alternatives. More than just a "Satellite-as-a-Service" provider, Sidus Space is a trusted Mission Partner–from concept to Low Earth Orbit and beyond. Sidus Space is ISO 9001:2015, AS9100 Rev. D certified, and ITAR registered.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute ‘forward-looking statements’ within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words ‘anticipate,’ ‘believe,’ ‘continue,’ ‘could,’ ‘estimate,’ ‘expect,’ ‘intend,’ ‘may,’ ‘plan,’ ‘potential,’ ‘predict,’ ‘project,’ ‘should,’ ‘target,’ ‘will,’ ‘would’ and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors described more fully in the section entitled ‘Risk Factors’ in Sidus Space’s preliminary prospectus supplement and Annual Report on Form 10-K for the year ended December 31, 2022, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Sidus Space, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240129124412/en/

Investor Relations

Valter Pinto

KCSA Strategic Communications

sidus@kcsa.com

(212) 896-1254

Media

Pam Davis

Sidus Space

Mediateam@sidusspace.com

Source: Sidus Space, Inc.

FAQ

What is the ticker symbol for Sidus Space, Inc.?

The ticker symbol for Sidus Space, Inc. is SIDU.

How many shares were offered in the public offering?

1,251,700 shares of Class A common stock were offered in the public offering.

What is the public offering price per share?

The public offering price per share is $4.50.

What are the expected gross proceeds from the offering?

The expected gross proceeds from the offering are $5,632,650.

Who is acting as the sole book-running manager for the offering?

ThinkEquity is acting as the sole book-running manager for the offering.