Sidus Space Announces Proposed Public Offering

Rhea-AI Summary

Sidus Space, Inc. (SIDU) announces an underwritten public offering of its Class A common stock and/or pre-funded warrants. The company expects to use the net proceeds for working capital and general corporate purposes. The offering is subject to market conditions, and the underwriter may be granted an option to purchase additional shares. Interested parties should read the preliminary prospectus supplement and accompanying prospectus for more information.

Financial Analyst

From a financial perspective, the public offering of shares by Sidus Space, Inc. is a significant event that warrants investor attention. The move to sell Class A common stock or Pre-Funded Warrants is an attempt to raise capital, likely to support the company's expansion or to shore up its balance sheet. The decision to offer a 45-day option for an over-allotment to the underwriter suggests a strategy to capitalize on favorable market conditions, should they arise.

Investors should consider the implications of dilution, as the issuance of new shares could lead to a decrease in existing shareholders' equity percentage. However, this could be offset if the capital raised is used effectively to generate future growth. The use of proceeds for 'working capital and general corporate purposes' is quite broad and stakeholders may seek more specific details on how the funds will be allocated to gauge the potential impact on the company's financial health and strategic direction.

Market Research Analyst

The aerospace sector, particularly the commercial space flight and data-as-a-service segments, is rapidly evolving. Companies like Sidus Space, Inc. operate in a highly competitive and capital-intensive industry. The offering's success will depend on market conditions and investor confidence in the company's growth prospects. Market sentiment can be influenced by factors such as technological advancements, regulatory changes and the competitive landscape.

It's essential to analyze industry benchmarks and the performance of similar offerings to understand how this offering might be received. Investors will also evaluate Sidus Space's track record and future revenue-generating capabilities. If the market perceives the offering as a positive step towards the company's growth and value creation, it could lead to an increased investor interest in the aerospace sector.

Legal Expert

The mention of a shelf registration statement on Form S-3 indicates that Sidus Space, Inc. has previously filed the necessary documentation with the SEC, allowing the company to issue securities in one or more separate offerings. This process streamlines the ability for the company to act quickly on market conditions. Compliance with SEC regulations, including the filing of a preliminary prospectus supplement, is crucial for the transparency and legal governance of the offering.

Prospective investors should review these documents carefully to understand the risks and legal considerations associated with the offering. This includes any material changes to the company's financial situation or market risks that could affect the investment's outcome. Legal compliance and transparent communication with investors are essential for maintaining trust and ensuring the integrity of the capital markets.

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 that it intends to offer to sell shares of its Class A common stock (and/or pre-funded warrants (“Pre-Funded Warrants”) in lieu thereof) in an underwritten public offering. All of the shares of Class A common stock (and/or Pre-funded Warrants) are to be sold by the Company.

ThinkEquity is acting as sole book-running manager for the offering.

The Company expects to grant the underwriter a 45-day option to purchase up to an additional 15% of the number of shares of Class A common stock and/or Pre-funded Warrants sold in the offering to cover over-allotments, if any. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

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

The securities will be offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-273430), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 26, 2023 and declared effective on August 14, 2023. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or 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 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/20240129163044/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 did Sidus Space, Inc. (SIDU) announce?

Sidus Space, Inc. announced an underwritten public offering of its Class A common stock and/or pre-funded warrants.

What is the intended use of the net proceeds from the offering?

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

Who is acting as the sole book-running manager for the offering?

ThinkEquity is acting as the sole book-running manager for the offering.

Where can interested parties obtain more information about the offering?

Interested parties can obtain more information from the offices of ThinkEquity in New York or on the SEC's website at www.sec.gov.