Sidus Space Announces Closing of Public Offering

Rhea-AI Summary

Sidus Space, Inc. (SIDU) announced the closing of a public offering of 1,251,700 shares of its Class A common stock at a public offering price of $4.50 per share, resulting in gross proceeds of $5,632,650. The company plans to use the funds for working capital and general corporate purposes. ThinkEquity served as the sole book-running manager for the offering. The offering was made pursuant to an effective shelf registration statement filed with the SEC. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities.

Financial Analyst

The recent public offering by Sidus Space, Inc. represents a strategic move to bolster the company's financial position by increasing its working capital. The offering's gross proceeds of $5,632,650, before expenses, can be seen as a positive injection of funds that the company plans to allocate towards general corporate purposes. This level of fundraising is noteworthy for a company in the space industry, where capital expenditures can be significant. The offering price of $4.50 per share indicates the market's current valuation of Sidus Space and the use of pre-funded warrants suggests a strategy to accommodate investors who may wish to invest without immediately contributing the full share price.

From an investor's standpoint, this capital raise could be indicative of the company's growth trajectory and its need for liquidity to fund ongoing operations or to invest in new projects. However, the dilution of existing shareholders' equity is a potential drawback, as the issuance of additional shares could lead to a decrease in the value of previously held shares. The role of ThinkEquity as the sole book-running manager underscores the importance of having experienced financial institutions to facilitate such offerings, which can provide confidence to potential investors regarding the procedural aspects of the offering.

Market Research Analyst

The space industry is characterized by high entry barriers and substantial initial investments. Sidus Space's successful capital raise through this public offering could be an indicator of investor confidence in the company's future prospects and its ability to capitalize on the growing demand for space-related services and Data-as-a-Service offerings. The space sector has been gaining interest due to its potential for innovation and long-term commercial opportunities.

An analysis of the industry shows that companies like Sidus Space are competing in a rapidly evolving market where advancements in technology and reductions in launch costs are creating new business models. The funds acquired could help Sidus Space maintain a competitive edge by investing in research and development, expanding its service offerings, or improving its operational capabilities. However, it is crucial for investors to monitor how effectively the company utilizes the raised capital to generate returns and achieve sustainable growth amidst fierce competition and technological disruptions.

Legal Expert

The offering by Sidus Space, Inc. has been conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), which allows companies to register securities and gradually sell them to the public over time. The legal compliance of this process, including the filing of the final prospectus supplement with the SEC, is a critical aspect that provides transparency to investors and ensures adherence to securities laws.

It is important for potential investors to understand that such offerings are subject to regulatory scrutiny to protect investor interests. The statement in the press release that this shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction where such would be unlawful, highlights the regulatory complexities surrounding the sale of securities. Companies must navigate these laws carefully to avoid legal pitfalls and the involvement of a prospectus department, as mentioned for obtaining copies of the prospectus, is a testament to the procedural rigor involved in public offerings.

CAPE CANAVERAL, Fla.--(BUSINESS WIRE)-- Sidus Space, Inc. (Nasdaq: SIDU) ("Sidus" or the "Company"), a multi-faceted Space and Data-as-a-Service company, today announced the closing of its previously announced public offering of 1,251,700 shares of its Class A common stock (or pre-funded warrants (“Pre-funded Warrants”) in lieu thereof) at a public offering price of $4.50 per share (inclusive of the Pre-funded Warrant exercise price) per share, for gross proceeds of $5,632,650, before deducting underwriting discounts and offering expenses.

The Company intends to use the proceeds from the offering for working capital and general corporate purposes.

ThinkEquity acted as sole book-running manager for the offering.

The offering is being made pursuant to an effective shelf registration statement that has been filed with the U.S. Securities and Exchange Commission (the “SEC”). The final prospectus supplement relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004 Attention: Prospectus Department.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Sidus Space

Sidus Space (NASDAQ: SIDU) is a Space and Data-as-a-Service satellite company focused on mission-critical hardware manufacturing; multi-disciplinary engineering services; satellite design, production, launch planning, mission operations; and in-orbit support. The Company is in Cape Canaveral, Florida, where it operates from a 35,000-square-foot manufacturing, assembly, integration, and testing facility focused on vertically integrated Space-as-a-Service solutions including end-to-end satellite support.

Sidus Space has a mission of Bringing Space Down to Earth™ and a vision of enabling space flight heritage status for new technologies while delivering data and predictive analytics to domestic and global customers. Any corporation, industry, or vertical can start their journey off-planet with Sidus Space’s rapidly scalable, low-cost satellite services, space-based solutions, and testing alternatives. More than just a "Satellite-as-a-Service" provider, Sidus Space is a trusted Mission Partner–from concept to Low Earth Orbit and beyond. Sidus Space is ISO 9001:2015, AS9100 Rev. D certified, and ITAR registered.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute ‘forward-looking statements’ within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words ‘anticipate,’ ‘believe,’ ‘continue,’ ‘could,’ ‘estimate,’ ‘expect,’ ‘intend,’ ‘may,’ ‘plan,’ ‘potential,’ ‘predict,’ ‘project,’ ‘should,’ ‘target,’ ‘will,’ ‘would’ and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors described more fully in the section entitled ‘Risk Factors’ in Sidus Space’s preliminary prospectus supplement and Annual Report on Form 10-K for the year ended December 31, 2022, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Sidus Space, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240201485597/en/

Investor Relations

Valter Pinto

KCSA Strategic Communications

sidus@kcsa.com

(212) 896-1254

Media

Pam Davis

Sidus Space

Mediateam@sidusspace.com

Source: Sidus Space, Inc.

FAQ

What is the recent public offering announcement from Sidus Space, Inc. (SIDU)?

Sidus Space, Inc. (SIDU) closed a public offering of 1,251,700 shares of its Class A common stock at a public offering price of $4.50 per share, resulting in gross proceeds of $5,632,650.

How does Sidus Space, Inc. (SIDU) plan to use the proceeds from the offering?

The company intends to use the proceeds from the offering for working capital and general corporate purposes.

Who served as the sole book-running manager for the offering?

ThinkEquity acted as the sole book-running manager for the offering.

Where can the final prospectus supplement relating to the offering be obtained?

Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004 Attention: Prospectus Department.

What does the press release state about the offering and the securities?

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities.