Rocket Lab USA Inc. (NASDAQ:RKLB) saw its stock dip 4.2% in premarket trading on Tuesday after the aerospace firm revealed a new at-the-market (ATM) program to raise up to $750 million by selling common shares.
The satellite launch company will collaborate with several investment banks to facilitate the sales, including BofA Securities, Cantor Fitzgerald, BTIG, KeyBanc Capital Markets, Citizens JMP Securities, Needham & Company, and Roth Capital Partners. These sales agents are set to receive up to 3% of the total gross proceeds per share sold.
This new ATM program replaces a prior agreement that allowed Rocket Lab to sell up to $500 million of stock. Under that earlier arrangement, the company had sold roughly $396.6 million in shares before ending the program.
The ATM structure enables Rocket Lab to sell shares periodically through the appointed agents, who may act as either principals or intermediaries. While the agreement does not obligate them to sell a specific quantity of shares, the agents are expected to make commercially reasonable efforts in line with standard trading practices to place the stock.
The larger offering indicates that Rocket Lab is aiming to bolster its cash reserves to support ongoing development of its launch services and spacecraft manufacturing operations.
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