Sidus Space Inc (NASDAQ:SIDU) saw its stock drop sharply by 46.5% in pre-market trading after the space and defense tech firm announced the pricing of a public offering that will notably dilute current shareholders.
The company set the price for a best-efforts offering of 7,143,000 shares of Class A common stock at $1.05 each, targeting roughly $7.5 million in gross proceeds before fees and expenses. ThinkEquity is acting as the sole placement agent for the transaction.
Sidus Space, which delivers technology services to government, defense, intelligence, and commercial sectors, plans to allocate the net proceeds toward working capital and general corporate needs. The deal is expected to close by July 29, 2025, pending standard closing conditions.
The offering price, significantly below the recent trading levels, spurred the heavy pre-market selloff. Investors often view such dilutive financing unfavorably, as it reduces the proportional ownership of existing shareholders.
Operating in the competitive space technology arena, Sidus Space provides adaptable and cost-efficient solutions worldwide. The company’s shares trade under the ticker SIDU on Nasdaq.
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