Spire Global Announces Registered Direct Offering of $30 Million

Rhea-AI Summary

Spire Global, Inc. (SPIR) announces a registered direct offering of 2,142,858 shares of Class A common stock at $14.00 per share, raising approximately $30 million in gross proceeds.

Positive

• Spire Global, Inc. enters into securities purchase agreements with two institutional investors.
• The offering is for the purchase and sale of Class A common stock.
• The purchase price is set at $14.00 per share.
• The gross proceeds from the offering are expected to be around $30 million.
• The closing of the offering is anticipated to happen soon.

Negative

• None.

Financial Analyst

The direct offering by Spire Global, Inc. of over 2 million shares at $14.00 per share to institutional investors is a significant capital-raising event. This transaction will bolster the company's balance sheet by approximately $30 million before fees and expenses. For investors, it's essential to assess the dilutive impact of such an offering on existing shareholders. The issuance of additional shares typically dilutes the value of current shares, potentially leading to a short-term decline in stock price. However, if the capital is deployed effectively for growth initiatives or improving operational efficiencies, it could lead to long-term value creation.

From a financial perspective, the use of proceeds is a critical factor. If the funds are allocated towards accelerating product development, expanding market reach, or reducing debt, the long-term benefits could outweigh the immediate dilution. Investors should also consider the company's valuation relative to its peers and the price at which the new shares are being offered. A price of $14.00 per share could be seen as a vote of confidence by institutional investors if it's at or above the current market price.

Market Research Analyst

Spire Global operates in the space-based data and analytics sector, an industry with substantial growth potential given the increasing reliance on satellite data across various sectors such as agriculture, logistics and defense. The entry of institutional investors in a registered direct offering can be interpreted as a strategic move, signaling confidence in Spire's business model and future prospects. The market will likely monitor how Spire plans to utilize the $30 million in capital to maintain a competitive edge in the rapidly evolving space industry.

It's important to analyze the company's past performance in executing its business strategy and how effectively it has managed capital. A history of prudent capital management and successful deployment can reassure stakeholders that the new funds will contribute to sustainable growth. Conversely, if the company has a track record of underperformance or poor capital allocation, the market may react negatively despite the influx of funds.

VIENNA, Va.--(BUSINESS WIRE)-- Spire Global, Inc. (NYSE: SPIR) (“Spire” or “the Company”), a leading global provider of space-based data, analytics and space services, today announced that it has entered into securities purchase agreements with two institutional investors for the purchase and sale of 2,142,858 shares of Class A common stock at a purchase price of $14.00 per share pursuant to a registered direct offering, resulting in gross proceeds of approximately $30 million, before deducting placement agent commissions and other offering expenses. The closing of the offering is expected to occur on or about March 25, 2024, subject to the satisfaction of customary closing conditions.

In addition, the Company has issued the investors an option to acquire up to an additional 2,142,858 shares of Class A common stock at a price of $14.50 per share until the date that is 100 days from the date of the closing of the offering, resulting in additional gross proceeds of approximately $31 million, if exercised.

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

A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.

This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267413) previously filed with the U.S. Securities and Exchange Commission (the “SEC”). The offering is made only by means of a prospectus supplement and accompanying prospectus, which will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.

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 any such state or jurisdiction.

About Spire Global, Inc.

Spire (NYSE: SPIR) is a global provider of space-based data, analytics and space services, offering unique datasets and powerful insights about Earth so that organizations can make decisions with confidence in a rapidly changing world. Spire builds, owns, and operates a fully deployed satellite constellation that observes the Earth in real time using radio frequency technology. The data acquired by Spire’s satellites provides global weather intelligence, ship and plane movements, and spoofing and jamming detection to better predict how their patterns impact economies, global security, business operations and the environment. Spire also offers Space as a Service solutions that empower customers to leverage its established infrastructure to put their business in space. Spire has nine offices across the U.S., Canada, UK, Luxembourg, Germany and Singapore.

Forward-Looking Statements

This press release contains forward-looking statements, including information about the expected timing of closing and the use of proceeds from the offering, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of Spire to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents Spire files with the SEC, including but not limited to, Spire’s Annual Report on Form 10-K for the year ended December 31, 2023, as well as subsequent reports filed with the SEC. Other unknown or unpredictable factors also could have material adverse effects on Spire’s future results. The forward-looking statements included in this press release are made only as of the date hereof. Spire cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Spire expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240321743323/en/

Sarah Freeman

Communications Manager

Sarah.Freeman@spire.com

Benjamin Hackman

Head of Investor Relations

Benjamin.Hackman@spire.com

Source: Spire Global, Inc.

FAQ

What is the recent announcement made by Spire Global, Inc. (SPIR)?

Spire Global, Inc. has announced a registered direct offering of 2,142,858 shares of Class A common stock at a purchase price of $14.00 per share, raising approximately $30 million in gross proceeds.

How many shares are being offered by Spire Global, Inc. (SPIR) in the registered direct offering?

Spire Global, Inc. is offering 2,142,858 shares of Class A common stock in the registered direct offering.

What is the purchase price set by Spire Global, Inc. (SPIR) for the Class A common stock in the offering?

The purchase price set by Spire Global, Inc. for the Class A common stock in the offering is $14.00 per share.

How much gross proceeds are expected to be raised by Spire Global, Inc. (SPIR) through the registered direct offering?

Spire Global, Inc. is expected to raise approximately $30 million in gross proceeds through the registered direct offering.

When is the closing of the offering expected to occur for Spire Global, Inc. (SPIR)?

The closing of the offering for Spire Global, Inc. is anticipated to occur soon.