Mynaric Updates on Operational Continuity and Ongoing Production and Deliveries
Rhea-AI Summary
Mynaric (NASDAQ:MYNA), a laser communications products provider, confirms ongoing production and deliveries of its CONDOR Mk3 optical communications terminal while updating on StaRUG proceedings. The company has secured additional funding with a USD 28 million bridge loan and a USD 25 million restructuring loan from lenders in February 2025.
The StaRUG restructuring process aims to provide significant debt relief and includes a capital reduction to zero. This restructuring is designed to strengthen Mynaric's financial position without impacting operational model or manufacturing processes.
Mynaric continues its involvement in key projects including the U.S. Space Development Agency's PWSA Tranche 1 and 2, DARPA's Space-BACN program Phase 2, and collaborations with the European Space Agency and German government on quantum communication capabilities.
Positive
- Secured USD 53 million in new funding (USD 28M bridge loan + USD 25M restructuring loan)
- Continuing production and deliveries of CONDOR Mk3 terminal
- Ongoing participation in major government space programs
Negative
- Capital reduction to zero, severely impacting existing shareholders
- Company undergoing debt restructuring through StaRUG proceedings
- Significant debt burden requiring financial restructuring
Insights
Mynaric's announcement reveals a critical financial restructuring with severe implications for shareholders. The company is undergoing StaRUG proceedings (a German corporate stabilization mechanism similar to Chapter 11) which, by the company's own admission, includes "a capital reduction to zero" - meaning current shareholders would effectively be wiped out entirely.
This restructuring represents an existential crisis for equity investors despite the company's operational continuity. Mynaric has secured
The financial situation appears dire enough that lenders agreed to provide additional capital only on the condition of complete equity elimination. While the business itself continues manufacturing and delivering its optical communications terminals to customers including the Space Development Agency and DARPA, the financial restructuring effectively represents a total loss scenario for current shareholders.
Chief Restructuring Officer Andreas Reif's statement that the plan would "create a fresh start for Mynaric without affecting our operational model" confirms the company may continue as a going concern, but under an entirely new capital structure that excludes current shareholders. This is a textbook debt-to-equity conversion where creditors become the new owners while previous equity holders are eliminated.
Despite maintaining valuable government contracts and continuing product shipments, the announcement of capital reduction to zero represents catastrophic news for anyone holding shares, as it explicitly states their investment would be rendered worthless through this restructuring process.
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, DE / ACCESS Newswire / March 10, 2025 / 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.
Mynaric AG
comms@mynaric.com
+49 8105 7999 0
SOURCE: Mynaric AG
View the original press release on ACCESS Newswire
FAQ
What financial support did Mynaric (MYNA) secure in February 2025?
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