Terran Orbital is busy building satellites including 600 for Rivada Networks, but a group of investors are concerned about the company’s depressed share price and demanding that the CEO Marc Bell be replaced – and the current role of CEO and Chairman be divided. The investors also want an urgent strategic review of the business.

In September, Terran, based in Florida, raised about $32 million by selling off 23 million shares (at about $1.40 per share).

The problem – for at least some investors – is that Terran has lost about 94 per cent of its market value since going public last year, and are calling on the aerospace and defense company to launch a strategic review and dump its CEO.

The investment group includes Sophis Investments, Roark’s Drift and three co-founders of Terran’s main operating subsidiary, Tyvak Nano-Satellite Systems, according to a letter they sent to the company, and which collectively hold 8.4 per cent of Terran’s stock (16.58 million shares).

A letter from the group to the Board of Directors read: “Despite claiming an order backlog of more than $2.6 billion (as of October 11th), Terran’s stock has fallen approximately 94 per cent since its March 2022 public market debut, with the Company’s mistimed and poorly executed de-SPAC transaction leaving it in constant need of cash. In addition to being undercapitalised, Terran’s materially misaligned compensation incentives and its reckless ‘growth at all costs’ philosophy have significantly harmed the business, resulting in a lack of trust by the market, an inability to raise money on favorable terms, and highly-dilutive follow-on share offerings. Stockholders have seen the value of their investment dwindle, and while we expect the Company can continue to win new contract awards over the near term, we do not believe that it can effectively scale towards profitability without addressing underlying strategic and operational issues.”

The complaint letter added: “We believe the issues plaguing Terran are largely self-inflicted and can be remediated if the right management team and directors are installed immediately. Accordingly, time is of the essence.”

The letter has done little for Terran’s share price, down 93 per cent since its IPO.

On the upside Terran announced on October 13 ththat it had opened its sophisticated Printed Circuit fabrication facility at its Irvine, California factory.

“In addition to its two new state-of-the-art PCBA Surface Mount Technology (SMT) lines, the company also added capabilities for post-SMT processes, fully automated inspection, 3-dimensional X-ray testing, Automated Optical Inspection (AOI), and flying probe technologies that give it the complete ability to produce, inspect, and test a broad spectrum of PCBAs in its facility,” the company said.

Other posts by Chris Forrester:

1. Ariane 6 launch campaign underway
2. Virgin Galactic in stock split
3. Thuraya-3 suffers major problem
4. AST SpaceMobile hit by Class Action
5. Optimism under threat at SES
6. Rivada visits Terran Orbital’s manufacturing HQ
7. Avanti wins spectrum debt obligation case
8. SpaceX breaks records for re-use launchers
9. IRIS2 already in trouble?

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Tags: IPO, Space, terran