Why Momentus (MNTS) Shares Are Trading Lower
Portfolio Pulse from Henry Khederian
Momentus Inc. (NASDAQ:MNTS) shares dropped 7.4% after announcing a securities purchase agreement with a U.S. institutional investor for the sale of 3,687,000 shares at $1.085 each, and warrants. The deal is expected to raise about $4 million in gross proceeds, with additional warrants to purchase 3,687,000 shares at $0.96. The offering is set to close around January 17, with A.G.P./Alliance Global Partners as the placement agent. MNTS has a 52-week range of $0.75 to $66.50.
January 16, 2024 | 5:33 pm
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Momentus Inc.'s stock price fell due to a direct offering below the current trading price, which typically dilutes existing shareholders and suggests the company may be in need of capital.
The stock price of Momentus Inc. is likely to experience downward pressure in the short term due to the direct offering at a price lower than the current market price, which indicates dilution for current shareholders. The need for capital might also raise concerns about the company's financial health.
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