Momentus secures $4M through direct stock offering to institutional investor

Momentus secures $4M through direct stock offering to institutional investor
by Clarence Oxford
Los Angeles CA (SPX) Jan 17, 2024

Momentus Inc. (NASDAQ: MNTS) recently announced a registered direct offering that will raise approximately $4 million. This move underscores the company's ongoing efforts to strengthen its financial position and continue its expansion in the rapidly evolving space sector.

Under the terms of the agreement, Momentus will sell 3,687,000 shares of common stock (or common stock equivalents) to a single U.S. institutional investor. The price per share is set at $1.085, aligning with the current market values under Nasdaq rules. This sale, which is expected to close on or about January 17, 2024, will result in total gross proceeds of around $4.0 million, before accounting for placement agent commissions and other estimated offering expenses.

Additionally, the company has agreed to issue warrants for the purchase of up to 3,687,000 shares of common stock. These warrants have an exercise price of $0.96, are exercisable immediately, and have a five-year validity from the date of issuance. This strategic move allows the investor an opportunity to further invest in Momentus should the company's stock price appreciate.

A.G.P./Alliance Global Partners is playing a crucial role in this transaction as the sole placement agent. Their expertise in investment banking is critical in ensuring a smooth and successful offering process. The offering is conducted under an effective shelf registration statement on Form S-3 (File No 333-267230), previously filed with the U.S. Securities and Exchange Commission (SEC). Details about the offering will be available in a prospectus supplement filed with the SEC, accessible on their website.

In a move to make its financial instruments more attractive to investors, Momentus has also agreed to amend certain existing warrants. These warrants, which initially allowed the purchase of up to 5,808,538 shares of common stock at $3.862 per share, will now have a reduced exercise price of $0.96 per share. However, this amendment is subject to stockholder approval and the warrants will expire five years from the date such approval is obtained.

If stockholder approval is not secured within six months following the initial issuance of these warrants, the exercise price will automatically be reduced to the Minimum Price as defined in Nasdaq Listing Rule 5635(d), based on the common stock's value six months post-issuance. These adjusted warrants will then expire five years from that date.