SAN JOSE, Calif. - Momentus Inc. (NASDAQ: NASDAQ:MNTS), a company specializing in satellite buses and in-space services, has entered into a securities purchase agreement with an unnamed U.S. institutional investor. The deal, which involves the sale of over 4.6 million shares and equivalent warrants, is set to bring in approximately $4 million in gross proceeds before expenses.
The shares are being sold at $0.865 each, while the accompanying warrants—allowing the purchase of an equal number of shares—have an exercise price of $0.74 and can be exercised immediately. These warrants will be valid for five years from their date of issuance. The transaction is anticipated to close on or about March 7, 2024, provided all customary closing conditions are met.
In addition, Momentus has agreed to amend existing warrants for nearly 3.7 million shares, reducing the exercise price from $0.96 to $0.74, contingent upon stockholder approval. If this approval is not secured within six months of the initial issuance, the exercise price will automatically drop to the minimum price according to Nasdaq rules, and the warrants' validity will be adjusted accordingly.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the offering. The company, known for providing various in-orbit services, including transportation and hosted payloads, did not frame the announcement as an offer to sell or a solicitation of an offer to buy these securities.
This news is based on a press release statement.
InvestingPro Insights
As Momentus Inc. (NASDAQ: MNTS) navigates its latest financial maneuver with a securities purchase agreement, the market is keeping a keen eye on its performance metrics and future potential. With a market capitalization of $9.34 million, the company's recent activities have sparked interest among investors looking for growth opportunities. According to InvestingPro data, Momentus has demonstrated an impressive revenue growth rate of 1121.23% over the last twelve months as of Q3 2023, which aligns with the InvestingPro Tip that analysts anticipate sales growth in the current year. This metric is particularly significant as it suggests a robust expansion in the company's business operations and market reach.
Another notable InvestingPro Tip is the company's gross profit margin, which stands at a substantial 76.81% for the same period. This figure indicates Momentus's ability to maintain a strong profit rate on its sales, a reassuring sign for investors considering the company's financial health. However, it's also important to note that analysts do not expect the company to be profitable this year, which could be a point of concern for potential investors.
Investors should also be aware of the stock's recent performance, which has seen significant fluctuations. The one-week price total return as of the 65th day of 2024 shows an increase of 9.2%, yet the one-month and three-month returns have seen sharp declines of -17.89% and -72.63%, respectively. This high price volatility is consistent with the InvestingPro Tip that the stock generally trades with high price volatility, suggesting that Momentus's stock may be best suited for those with a higher risk tolerance.
For those interested in a deeper analysis, InvestingPro offers additional insights on Momentus Inc., including a fair value estimate and more detailed financial metrics. To access these insights and to take advantage of a special offer, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 17 additional InvestingPro Tips available, investors can gain a comprehensive understanding of Momentus's financial landscape and make more informed decisions.
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