Mynaric Updates on Operational Continuity and Ongoing Production and Deliveries

Rhea-AI Summary

Mynaric (NASDAQ: MYNA), a laser communications products provider, announces continued production and delivery of its CONDOR Mk3 optical communications terminal while undergoing StaRUG restructuring proceedings. The company has secured USD 53 million in new financing, including a USD 28 million bridge loan and USD 25 million restructuring loan in February 2025.

The restructuring plan includes a capital reduction to zero and significant debt relief to strengthen Mynaric's financial position. The company maintains its involvement in key projects, including the U.S. Space Development Agency's PWSA Tranche 1 and 2 programs, DARPA's Space-BACN program Phase 2, and collaborations with ESA and the German government on quantum communication initiatives.

Positive

• Secured USD 53 million in new financing to support operations
• Continuing production and delivery of CONDOR Mk3 terminals
• Involvement in multiple high-profile government space programs
• Debt relief through restructuring to reduce cash interest burden

Negative

• Capital reduction to zero as part of restructuring plan
• Company undergoing financial restructuring due to debt issues
• Requires significant debt relief to maintain operations

Insights

Financial Restructuring Specialist

Mynaric's announcement reveals a critical financial restructuring through German StaRUG proceedings that will have severe implications for current shareholders. The most alarming detail is the requirement for a capital reduction to zero, effectively wiping out existing shareholder equity - a condition demanded by lenders to agree to the restructuring concept.

While operationally continuing to deliver its CONDOR Mk3 optical communications terminals, this financial maneuver indicates profound financial distress. The company secured $28 million in bridge loans and an additional $25 million in restructuring loans, demonstrating both significant cash needs and lender willingness to provide short-term rescue financing.

The restructuring aims to substantially reduce Mynaric's debt burden and recapitalize the balance sheet, suggesting the company's liabilities had become unsustainable. Despite maintaining operations and customer deliveries during this process, the capital wipeout represents a fundamental breakdown of the existing capital structure.

This process mirrors similar restructurings where operations continue but equity holders bear the brunt of financial reorganization. The company's strategic position in optical communications for space applications has evidently convinced lenders of the underlying business viability, despite the need for this drastic financial reset.

• Mynaric is continuing to ramp up and increase deliveries of its flagship CONDOR Mk3
• StaRUG proceedings intended to place company on secure financial footing moving forward

MUNICH, March 10, 2025 /PRNewswire/ -- Mynaric (NASDAQ: MYNA) (FRA: M0YN), a leading provider of industrialized, cost-effective, and scalable laser communications products, today confirms that it is continuing to ramp up production and customer deliveries of the CONDOR Mk3 optical communications terminal and updates on the background to the company's StaRUG proceedings.

"We are continuing to deliver on our promise to the industry to provide scalable products that meet evolving program requirements, and drive innovation in areas such as multi-orbit constellations. To maintain our industry position, we must continue delivering to existing customers while advancing future applications of optical communications technology."

- Joachim Horwath, Chief Technology Officer and founder of Mynaric 

The StaRUG proceedings, once completed, would provide for significant debt relief, enabling the company to continue to serve its current and potential customers, suppliers and partners.

"We firmly believe that this restructuring is the best course of action for Mynaric's future. With the support and trust of our lenders, we are confident in our ability to navigate this period successfully and emerge as an even stronger and more reliable partner."

- Andreas Reif, Chief Restructuring Officer of Mynaric

Focus on Delivering on Existing Contracts and Winning Future Opportunities

Mynaric is also continuing to pursue opportunities that explore the use of free-space optical communications for additional space programs.

"Mynaric remains fully committed to delivering high-quality products to our customers throughout this process. The continued support of our lenders strengthens our financial position, enabling us to meet the needs of our current customers while expanding to support future partners seeking to deploy our industry-leading optical communication terminals."

- Tim Deaver, Vice President of Global Sales & Solutions

In addition to contributing to the U.S. Space Development Agency's (SDA) Proliferated Warfighter Space Architecture (PWSA) Tranche 1 and Tranche 2 programs, Mynaric has also been recognized as a key development partner in Phase 2 of DARPA's Space-BACN program, and has been selected by both the European Space Agency (ESA) to investigate optical technologies for next generation high-throughput optical inter-satellite links and the German government to contribute to multiple projects to develop quantum communication capabilities.

Establishing a Stable Financial and Operational Footing Moving Forward

Mynaric's lenders agreed to the restructuring concept on the condition that Mynaric initiates StaRUG proceedings and that the restructuring plan provides for a capital reduction to zero.

"The aim of the StaRUG proceedings is to create a fresh start for Mynaric without affecting our operational model or manufacturing processes. By reducing the debt burden and recapitalizing the balance sheet, Mynaric can invest in high-tech advancements, maintain competitive pricing and secure our position as an industry leader."

- Andreas Reif, Chief Restructuring Officer of Mynaric

To enable Mynaric to cover its expected ongoing operational and working capital until the conclusion of the StaRUG proceedings, Mynaric's lenders committed a fourth bridge loan of USD 28 million in February 2025 as well as an additional USD 25 million restructuring loan, giving Mynaric the necessary resources to support its production plan and ongoing operations.

The implementation of the financial restructuring through the StaRUG proceedings would safeguard jobs, protect creditor interests, and significantly reduce Mynaric's cash interest burden.

About Mynaric

Mynaric (NASDAQ: MYNA) (FRA: M0YN) is leading the industrial revolution of laser communications by producing optical communications terminals for air, space and mobile applications. Laser communication networks provide connectivity from the sky, allowing for ultra-high data rates and secure, long-distance data transmission between moving objects for wireless terrestrial, mobility, airborne- and space-based applications. The company is headquartered in Munich, Germany, with additional locations in Los Angeles, California, and Washington, D.C.

For more information, visit mynaric.com.

Media Contact:
Krista Hazen
Krista.hazen@mynaricusa.com
(202) 900-9966

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SOURCE Mynaric USA, Inc.

FAQ

What is the total amount of new financing secured by Mynaric (MYNA) in February 2025?

Mynaric secured USD 53 million in total new financing, consisting of a USD 28 million bridge loan and a USD 25 million restructuring loan.

What major projects is Mynaric (MYNA) currently involved in?

Mynaric is involved in SDA's PWSA Tranche 1 and 2 programs, DARPA's Space-BACN Phase 2, ESA's optical inter-satellite links project, and German government quantum communication initiatives.

How will the StaRUG proceedings affect Mynaric's (MYNA) operations?

The proceedings aim to provide debt relief and recapitalize the balance sheet without affecting operational model or manufacturing processes, while safeguarding jobs and creditor interests.

What is the main product Mynaric (MYNA) is currently delivering?

Mynaric is ramping up production and delivery of its flagship CONDOR Mk3 optical communications terminal.