Momentus Inc. (Momentus (MNTS)) shares took a hit in Friday premarket trading after the space infrastructure company announced a $25 million registered direct offering of 1.85 million common shares, priced at-the-market under Nasdaq rules. The stock was down about 20% at $13.00 at the time of publication, even as the broader market edged higher — the Nasdaq rose 0.13% and the S&P 500 gained 0.25%.
The offering is expected to close on or about June 15, with proceeds earmarked for working capital and general corporate purposes. A.G.P./Alliance Global Partners is acting as the sole placement agent. Investors are likely reacting to the potential dilution, as the new shares increase the company's outstanding share count.
The pullback comes a day after Momentus participated in a broader rally among space-related stocks, as investors positioned ahead of the anticipated public debut of SpaceX. Smaller, high-volatility space stocks often see sharp reversals after rapid advances, as short-term traders lock in gains when momentum begins to fade.
Momentus develops satellite, in-space transportation, and orbital infrastructure solutions for government and commercial customers.
