The space technology company launched a public offering of shares priced at $1.30 apiece.
- Total gross proceeds are expected to be approximately $25 million, before deducting the placement agent's fees and offering expenses.
- Sidus Space plans to use the net proceeds from the offering for sales and marketing, operational costs, and product development.
- The move comes after the stock soared 97% in the previous session following the company's announcement that it was selected for a federal contract.
Sidus Space (SIDU) stock plunged 39% in premarket trading on Tuesday after the company announced the pricing of a public offering of 19 million shares.
The space technology company said the shares are being sold at a public offering price of $1.30 per share, which was below its previous close. Total gross proceeds are expected to be approximately $25 million, before deducting the placement agent's fees and offering expenses.
Why Is The Company Selling The Shares?
Sidus Space plans to use the net proceeds from the offering for sales and marketing, operational costs, product development, manufacturing expansion, working capital, and general corporate purposes.
The move comes after the stock soared 97% in the previous session following the company's announcement that it was selected as a contract recipient under the Missile Defense Agency's (MDA) new Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program.
The indefinite-delivery/indefinite-quantity (IDIQ) contract, with a ceiling of $151 billion, provides for an indefinite quantity of supplies or services within stated limits over a fixed period.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about Sidus Space was in the ‘extremely bullish’ territory at the time of writing.
Space technology companies have gained increased attention following President Donald Trump’s new space policy, which outlined aggressive goals for lunar missions, space security enhancements, and private-sector growth.
Sidus Space stock has fallen 35% this year.
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