Sidus Space, Inc. SIDU shares are trading higher on Tuesday following the announcement of a securities offering.
Sidus has entered into definitive agreements with accredited and institutional investors for the issuance and sale of units in a brokered private placement.
Each unit consists of shares of Class A common stock (or pre-funded warrants in lieu thereof) paired with common warrants to purchase additional shares of Class A common stock.
The offering is set at $2.07 per unit, with a total of approximately 6.8 million shares of Class A common stock (or pre-funded warrants) being issued.
Additionally, common warrants for 3.4 million shares will be sold, each entitling holders to purchase Class A common stock at an exercise price of $2.25 per share. The pre-funded warrants will allow the holder to acquire shares at an exercise price of $0.0001 each.
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The offering is expected to raise gross proceeds of around $14 million before fees and expenses. The funds will be used for general working capital and corporate purposes.
The private placement is slated to close on December 18, pending customary closing conditions.
Last month, Sidus Space successfully completed the launch processing of LizzieSat-2 at Vandenberg Space Force Base in California.
The satellite has been handed over to SpaceX and is ready for the Bandwagon-2 rideshare mission, set for launch in December 2024.
Price Action: SIDU shares are trading higher by 14.6% to $5.25 at last check Tuesday.
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