Momentus Announces $4M Registered Direct Offering Of 2M Shares At A Price Of $2/Share, Priced At-The-Market Under Nasdaq Rules
Portfolio Pulse from Benzinga Newsdesk
Momentus Inc. (NASDAQ:MNTS) has announced a registered direct offering of 2 million shares at $2 per share, resulting in total gross proceeds of approximately $4 million. The company will also issue warrants to purchase up to an additional 2 million shares of common stock. The offering is expected to close on October 4, 2023. Additionally, certain existing warrants will be amended to have a reduced exercise price of $2.00 per share and a termination date of October 4, 2028.
October 02, 2023 | 6:27 pm
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Momentus Inc. is issuing 2 million shares at $2 per share, which could dilute existing shareholders' equity. The company is also issuing warrants for an additional 2 million shares, which could further dilute equity if exercised.
The issuance of new shares dilutes the value of existing shares, which could lead to a decrease in the stock price. The issuance of warrants could lead to further dilution if they are exercised, which could also negatively impact the stock price.
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