Sidus Space Announces Proposed Public Offering

Rhea-AI Summary

Sidus Space, Inc. (SIDU) announces a public offering of Class A common stock to raise funds for working capital and general corporate purposes. The offering, managed by ThinkEquity, includes an option for additional shares. The company plans to use the net proceeds for operational needs.

Insights

Financial Analyst

The proposed underwritten public offering by Sidus Space, Inc. is a strategic move to raise capital. The decision to offer Class A common stock or Pre-Funded Warrants provides flexibility for investors and the company, catering to different investment preferences. The involvement of ThinkEquity as the sole book-running manager suggests a focused and potentially expedited process, which could be beneficial for Sidus in terms of timing and execution.

With the underwriter's option to purchase additional shares to cover over-allotments, the company is preparing for a scenario where demand exceeds the initial offering. This could indicate confidence in investor interest. However, the caveat regarding market conditions underscores the inherent uncertainty of the offering's success. The proceeds are earmarked for working capital and general corporate purposes, which are broad terms that investors might seek to be specified further to gauge the potential impact on the company's growth and operational efficiency.

Market Research Analyst

The space sector is becoming increasingly competitive, with numerous players entering the market. Sidus Space's move to secure additional funding through a public offering could be seen as an attempt to solidify its position and invest in areas that could give it a competitive edge. The use of a shelf registration indicates a pre-planned financing strategy, allowing for quicker access to capital markets and providing the company with the flexibility to take advantage of market conditions.

Investors will likely scrutinize the preliminary prospectus supplement for insights into the company's future plans and financial health. The success of the offering could be contingent on the broader market's perception of the space industry's growth potential and Sidus Space's specific prospects within it.

Legal Expert

The offering's reliance on a shelf registration statement signifies compliance with regulatory requirements for such capital-raising activities. It allows Sidus Space to offer and sell securities without the need for a separate registration for each act of offering. Investors should be aware that the effectiveness of the registration statement and the SEC's review process do not entail an endorsement of the securities offered. They provide a legal framework to ensure transparency and protect investors by requiring the disclosure of essential information.

Interested parties are encouraged to review the prospectus and other incorporated documents carefully. These documents contain critical legal and financial information that can affect the offering's attractiveness and the rights of the securities' holders. The legal framework is designed to facilitate informed decision-making by investors.

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 that it intends to offer to sell shares of its Class A common stock (and/or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) in an underwritten public offering. All of the shares of Class A common stock (and/or Pre-funded Warrants) are to be sold by the Company.

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

The Company expects to grant the underwriter a 45-day option to purchase up to an additional 15% of the number of shares of Class A common stock and/or Pre-funded Warrants sold in the offering to cover over-allotments, if any. The offering is subject to market 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.

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

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 or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, 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 such state or jurisdiction.

About Sidus Space

Sidus Space (NASDAQ: SIDU) is a multi-faceted 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. More than just a “Satellite-as-a-Service” provider, Sidus Space’s products and services are offered through its four business units: Space and Defense Hardware Manufacturing, Satellite Manufacturing and Payload Integration, Space-Based Data Solutions, and AI/ML Products and Services to support customers 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/20240229101136/en/

Investor Relations

Valter Pinto, Managing Director

KCSA Strategic Communications

sidus@kcsa.com

(212) 896-1254

Media

press@sidusspace.com

Source: Sidus Space, Inc.

FAQ

What is Sidus Space, Inc.'s (SIDU) recent announcement?

Sidus Space, Inc. (SIDU) announced a public offering of shares of its Class A common stock to raise funds for working capital and general corporate purposes.

Who is managing the underwritten public offering for Sidus Space, Inc. (SIDU)?

ThinkEquity is acting as the sole book-running manager for the offering by Sidus Space, Inc. (SIDU).

What is the purpose of the net proceeds from Sidus Space, Inc.'s (SIDU) offering?

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

Where can interested parties find more information about Sidus Space, Inc.'s (SIDU) offering?

Interested parties can find more information about the offering on the SEC's website at www.sec.gov or at the offices of ThinkEquity in New York.