Momentus Stock Slides as $25 Million Share Sale Tests Space Rally
Momentus Inc. shares came under pressure Friday after the San Jose-based space infrastructure company announced a new $25 million registered direct offering, a sale of newly issued shares directly to selected investors under an effective registration statement. The company said it agreed to sell 1,851,852 shares of common stock to new and existing long-term institutional investors, with closing expected on or about June 15, subject to customary conditions. Momentus said the net proceeds are intended for working capital and general corporate purposes. The stock was trading around $13 in early New York trading, down about 20% from Thursday’s $16.30 close, according to live market data and Investing.com’s Friday report on the offering-driven selloff. The drop matters because stock offerings can create dilution, meaning existing shareholders own a smaller percentage of the company after new shares are issued, even if the cash raised improves the balance sheet.