Momentus (NASDAQ:MNTS) is trending, and its shares are up about 8% in early trading today today. The rally of MNTS stock comes after the space company nabbed a contract with NASA for flight and payload integration services.
A Momentus Deal With NASA
Momentus disclosed this morning that it had received a five-year deal from the space agency “to provide flight and payload integration services” to the space agency. Under the agreement, MNTS will obtain an initial sum of $45 million from the U.S. government.
Further, it will be one of 15 firms that can be paid additional amounts by NASA to produce various systems related to the agency’s rockets, balloons and ships. Any components provided by Momentus would “facilitate the deployment of satellites, payloads, and scientific instruments,” the company reported.
A New MNTS Stock Sale
The firm also announced this morning that it would sell 4.6 million shares of MNTS stock to designated investors through “a registered direct offering priced at-the-market.” The shares will be sold for 86.5 cents per share, and Momentus will obtain gross proceeds of about $4 million from the deal.
Additionally, the firm will provide warrants to “the investors” of said sale to buy an additional 4.6 million shares of its stock.
Momentus has been reportedly strapped for cash as of late. This led to it delaying one of its missions back in January.
Additional Information About Momentus
Among the products marketed by the company are “water plasma thrusters.” According to the firm, these thrusters “are safer and more environmentally friendly than traditional chemical propulsion systems.” Momentus also sells “flexible solar arrays,” which generate electricity, while its Vigoride Orbital Service Vehicle brings satellites into orbit.
Founded in 2017, Momentus generated revenue of $2.2 million in the 12 months that ended on Sept. 30.
In the month that ended yesterday, MNTS stock fell 11%, while it tumbled 73% in the three months that ended on the same day. Year-to-date, the stock is down over 50%.
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
