Area firm Momentus MNTS working out of cash
An artist’s rendering of a Momentus Vigoride switch car deploying a satellite tv for pc in orbit.
Momentus
Area firm Momentus warned shareholders in a securities submitting on Friday that the corporate is working out of cash and doesn’t have a monetary lifeline.
Momentus, as soon as valued at greater than $1 billion before going public via a special purpose acquisition company in 2021, deserted plans for its subsequent mission, which was to fly satellite tv for pc clients in March. The corporate cited its “incapability to help persevering with operations for the anticipated launch date on account of the Firm’s restricted liquidity and money steadiness.”
Momentus already laid off about 20% of its workforce on the finish of December to scale back prices.
Regardless of the cuts, Momentus stated its “potential to proceed to fund operations for the subsequent few weeks and months will likely be depending on its potential to boost fairness capital or interact in a strategic transaction.”
It famous it “doesn’t have definitive commitments right now.”
Shares of Momentus fell greater than 30% throughout buying and selling on Friday, with its market worth sliding to just about $5 million. The corporate acquired one other delisting warning from the Nasdaq earlier this month, having averted a delisting final yr by performing a reverse inventory break up.
Momentus was amongst a dozen or so house firms that debuted during the SPAC frenzy. The corporate was already on rocky footing earlier than it went public, with delayed missions after the departure of its founder and former CEO, its valuation reduce in half to lower than $600 million and an SEC settlement as a consequence of allegations of falsifying results from a prototype spacecraft test.
The corporate has flown 4 missions up to now, deploying 17 satellites for purchasers. It pitched itself as a “final mile supply” service for spacecraft, focusing on the marketplace for small satellites, with its central product the Vigoride orbital switch car, or “house tug,” designed to ship satellites from a rocket to a particular orbit.
Do not miss these tales from CNBC PRO:
