Terran Orbital raises $37m
May 29, 2023
By Chris Forrester
Terran Orbital has entered into a definitive sale of 29,000,000 shares of the Company’s common stock at a price of $1.28 per share. The warrants linked to the sale have an exercise price of $1.43 per share, will be exercisable commencing six months following issuance, and will have a term of exercise equal to five years following the initial exercise date.
The closing of the offering is expected to occur on around May 30th subject to the satisfaction of customary closing conditions.
However, a report from equity advisors at Bank of America on May 26th, hit Terran with a “double downgrade” and dropping the bank’s view from its previous ‘BUY’ rating to “Underperform”. The bank expressed concerns over the company’s business backlog and overall liquidity.
The gross proceeds to the Company from the offering are expected to be approximately $37.1 million, before deducting the placement agent’s fees and other offering expenses payable by the Company. After deductions there should be $34.24 million left for Terran.
Terran says it intends to use the net proceeds of this offering for general corporate purposes including capital expenditures, working capital, research and development and general and administrative expenses.
Terran Orbital is building a new factory in Irvine, California, and which will eventually start production of and initial 300 low Earth orbiting satellites for Rivada Space Networks.