Space company Momentus, once valued at more than $1 billion, is running dangerously low on money

Space company Momentus, once valued at more than  billion, is running dangerously low on money


An artist’s rendering of a Momentus Vigoride transfer vehicle deploying a satellite in orbit.

Momentus

Space company Momentus warned shareholders in a securities filing on Friday that the company is running out of money and does not have a financial lifeline.

Momentus, once valued at more than $1 billion before going public via a special purpose acquisition company in 2021, abandoned plans for its next mission, which was to fly satellite customers in March. The company cited its “inability to support continuing operations for the expected launch date as a result of the Company’s limited liquidity and cash balance.”

Momentus already laid off about 20% of its workforce at the end of December to reduce costs.

Despite the cuts, Momentus said its “ability to continue to fund operations for the next few weeks and months will be dependent on its ability to raise equity capital or engage in a strategic transaction.”

It noted it “does not have definitive commitments at this time.”

Shares of Momentus fell more than 30% during trading on Friday, with its market value sliding to nearly $5 million. The company received another delisting warning from the Nasdaq earlier this month, having avoided a delisting last year by performing a reverse stock split.

Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

Momentus was among a dozen or so space companies that debuted during the SPAC frenzy. The company was already on rocky footing before it went public, with delayed missions after the departure of its founder and former CEO, its valuation cut in half to less than $600 million and an SEC settlement due to allegations of falsifying results from a prototype spacecraft test.

The company has flown four missions to date, deploying 17 satellites for customers. It pitched itself as a “last mile delivery” service for spacecraft, targeting the market for small satellites, with its central product the Vigoride orbital transfer vehicle, or “space tug,” designed to deliver satellites from a rocket to a specific orbit.

Don’t miss these stories from CNBC PRO:



Source

Mattel misses Wall Street estimates as North American sales sink
Business

Mattel misses Wall Street estimates as North American sales sink

The Mattel, Inc. logo is displayed outside the headquarters of the toy company known for products including Barbie and Hot Wheels in El Segundo, California on June 8, 2023. Patrick T. Fallon | AFP | Getty Images Barbie-maker Mattel posted third-quarter results after the market close on Tuesday that missed analysts’ expectations as ongoing global […]

Read More
DraftKings acquires predictions platform Railbird
Business

DraftKings acquires predictions platform Railbird

Cheng Xin | Getty Images News | Getty Images DraftKings is acquiring predictions platform Railbird as it prepares to launch a mobile platform in the coming months to be called DraftKings Predictions. Railbird is licensed by the Commodity Futures Trading Commission to offer an event contracts exchange. DraftKings targeted the company for its team and […]

Read More
Netflix strikes ‘KPop Demon Hunters’ toy deals with both Mattel and Hasbro
Business

Netflix strikes ‘KPop Demon Hunters’ toy deals with both Mattel and Hasbro

Still from Netflix’s “KPop Demon Hunters.” Netflix Netflix is partnering with both Hasbro and Mattel to bring “KPop Demon Hunters” toys to shelves. The animated film, which debuted on the streaming service in June, has become Netflix’s most popular film of all time, with more than 325 million views worldwide. Its popularity has spurred Netflix […]

Read More