Sidus Space Announces Pricing of Public Offering

Rhea-AI Summary

Sidus Space (Nasdaq: SIDU) has announced the pricing of an underwritten public offering of 5,600,000 shares of Class A common stock (or pre-funded warrants) at $1.25 per share, aiming to raise $7.0 million in gross proceeds. The company granted underwriters a 45-day option to purchase up to an additional 840,000 shares. ThinkEquity is serving as the sole book-running manager. The offering is expected to close on November 14, 2024, with proceeds intended for working capital and general corporate purposes.

Positive

• Secured $7.0 million in gross proceeds through public offering
• Additional potential funding through 45-day over-allotment option

Negative

• Potential dilution for existing shareholders through 5.6 million new shares
• Additional dilution possible through 840,000 share over-allotment option

Insights

Financial Analyst

This $7.0 million public offering at $1.25 per share represents significant dilution for existing shareholders, given Sidus Space's market cap of about $9.6 million. The offering size of 5.6 million shares with an additional 840,000 share over-allotment option signals substantial capital needs. While the cash injection provides working capital, the pricing at current market levels and the dilutive impact raises concerns about the company's financial position and funding strategy. The use of pre-funded warrants alongside common stock suggests sophisticated investor involvement but also adds complexity to the capital structure. The timing and pricing indicate challenging market conditions for small-cap space companies seeking capital.

CAPE CANAVERAL, Fla.--(BUSINESS WIRE)-- Sidus Space, Inc. (Nasdaq: SIDU) ("Sidus" or the "Company"), an innovative, agile space mission enabler, today announced the pricing of an underwritten public offering of 5,600,000 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 $1.25 per share (inclusive of the Pre-funded Warrant exercise price) for gross proceeds of $7.0 million, before deducting underwriting discounts and offering expenses. All of the shares of common stock and Pre-funded Warrants are being offered by the Company. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 840,000 shares of Class A common stock and/or Pre-funded Warrants to cover over-allotments at the public offering price, less the underwriting discount.

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 November 14, 2024, subject to customary closing conditions.

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

A registration statement on Form S-1 (File No. 333-282632) relating to the shares was filed with the Securities and Exchange Commission ("SEC") and became effective on November 12, 2024. This offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. The final prospectus will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov.

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 mission enabler providing flexible, cost-effective solutions including custom satellite design, payload hosting, mission management, space manufacturing and AI enhanced space-based sensor data-as-a-service. With its mission of Space Access Reimagined™, Sidus Space is committed to rapid innovation, adaptable and cost-effective solutions, and the optimization of space system and data collection performance. With demonstrated space heritage including manufacturing and operating its own satellite and sensor system, LizzieSat™, Sidus Space serves government, defense, intelligence and commercial companies around the globe. Strategically headquartered on Florida’s Space Coast, Sidus Space operates a 35,000-square-foot space manufacturing, assembly, integration and testing facility and provides easy access to nearby launch facilities.

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 prospectus and Annual Report on Form 10-K for the year ended December 31, 2023, 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/20241112249980/en/

Investor Relations

investorrelations@sidusspace.com



Media

press@sidusspace.com

Source: Sidus Space, Inc.

FAQ

What is the price per share for Sidus Space (SIDU) public offering?

Sidus Space (SIDU) priced its public offering at $1.25 per share.

How many shares is Sidus Space (SIDU) offering in its November 2024 public offering?

Sidus Space is offering 5,600,000 shares of Class A common stock, with an additional 840,000 shares available through an over-allotment option.

How much money is Sidus Space (SIDU) raising in its 2024 public offering?

Sidus Space is raising $7.0 million in gross proceeds before deducting underwriting discounts and offering expenses.

When will Sidus Space (SIDU) 2024 public offering close?

The public offering is expected to close on November 14, 2024, subject to customary closing conditions.