Spire Global Announces Closing of $30 Million Registered Direct Offering

Rhea-AI Summary

Spire Global, Inc. (SPIR) closes registered direct offering, raising $30 million in gross proceeds with an option for additional $31 million. Net proceeds to be used for debt repayment, working capital, and corporate purposes.

Insights

Financial Analyst

Spire Global's recent completion of a registered direct offering at $14.00 per share, with the potential to raise additional funds through an options agreement, is a strategic move to bolster its financial position. The offering's success, accumulating approximately $30 million in gross proceeds, reflects investor confidence in Spire's business model and growth prospects. The option for investors to acquire additional shares at $14.50 could lead to further capital inflow of approximately $31 million, which is a savvy incentive mechanism to maintain investment interest over the next 100 days.

From a financial perspective, the use of proceeds for debt repayment is a prudent decision, potentially improving the company's balance sheet and creditworthiness. Allocating funds to working capital and general corporate purposes suggests an agenda for sustainable growth. However, investors should monitor the company's subsequent financial disclosures to assess the effectiveness of these allocations in driving value creation.

Market Research Analyst

The space-based data and analytics sector is witnessing a surge in demand, driven by advancements in technology and an increased reliance on satellite data across industries. Spire Global's capital raise through a direct offering positions the company to capitalize on this growth trend. The offering's timing and pricing strategy are critical factors that could influence the company's market share and competitive edge.

Investors should note that the direct offering bypasses the traditional underwriting process, potentially reducing the time to market and offering expenses. However, the fixed pricing at $14.00 and $14.50 per share could be a double-edged sword, depending on market volatility and investor sentiment in the short term. The company's future performance in leveraging the raised capital towards innovative solutions and customer acquisition will be key to its long-term success in the industry.

Legal Expert

The legal framework surrounding this transaction, including the use of an effective shelf registration statement and the SEC's involvement, ensures regulatory compliance and transparency for investors. The offering's structure, including the option to purchase additional shares, is crafted to adhere to securities laws and protect both the company and its investors.

It is important for potential investors to understand the legal implications and restrictions of such offerings, particularly the limitations on sales in certain jurisdictions and the conditions under which the options may be exercised. Vigilance towards the prospectus supplement and accompanying prospectus is important for informed investment decisions, as these documents detail the terms, risks and future plans of the company.

VIENNA, Va.--(BUSINESS WIRE)-- Spire Global, Inc. (NYSE: SPIR) (“Spire” or “the Company”), a global provider of space-based data, analytics and space services, today announced that it has closed its previously announced registered direct offering of 2,142,858 shares of Class A common stock at a purchase price of $14.00 per share, resulting in gross proceeds of approximately $30 million, before deducting placement agent commissions and other offering expenses.

In addition, the Company has issued the investors in the registered direct offering an option to acquire up to an additional 2,142,858 shares of Class A common stock at a price of $14.50 per share until the date that is 100 days from the date of the closing of the offering, resulting in additional gross proceeds of approximately $31 million, if exercised.

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

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

This offering was made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267413) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). The offering was made only by means of a prospectus supplement and accompanying prospectus, which was filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement 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 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 any such state or jurisdiction.

About Spire Global, Inc.

Spire (NYSE: SPIR) is a global provider of space-based data, analytics and space services, offering unique datasets and powerful insights about Earth so that organizations can make decisions with confidence in a rapidly changing world. Spire builds, owns, and operates a fully deployed satellite constellation that observes the Earth in real time using radio frequency technology. The data acquired by Spire’s satellites provides global weather intelligence, ship and plane movements, and spoofing and jamming detection to better predict how their patterns impact economies, global security, business operations and the environment. Spire also offers Space as a Service solutions that empower customers to leverage its established infrastructure to put their business in space. Spire has nine offices across the U.S., Canada, UK, Luxembourg, Germany and Singapore.

Forward-Looking Statements

This press release contains forward-looking statements, including information about the use of proceeds from the offering, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Spire to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents Spire files with the SEC, including but not limited to, Spire’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Spire’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Spire cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Spire expressly disclaims any intent or obligation to update or revise any 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/20240325701295/en/

Sarah Freeman

Communications Manager

Sarah.Freeman@spire.com

Benjamin Hackman

Head of Investor Relations

Benjamin.Hackman@spire.com

Source: Spire Global, Inc.

FAQ

What is the purpose of Spire Global's recent registered direct offering?

The purpose of the offering is for Spire Global to raise funds for debt repayment, working capital, and general corporate purposes.

How many shares of Class A common stock were offered in the direct offering?

Spire Global offered 2,142,858 shares of Class A common stock at a purchase price of $14.00 per share.

Who acted as the sole placement agent for the offering?

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

Where can investors find more information about the offering?

Investors can find more information about the offering in the prospectus supplement filed with the SEC and available on the SEC's website.

What is the option given to investors in the direct offering?

Investors in the direct offering have an option to acquire up to an additional 2,142,858 shares of Class A common stock at a price of $14.50 per share.