Momentus on Feb. 23 announced a preliminary settlement of a class-action lawsuit against the turbulent space tug startup, including a $4.5 million payout, as well as a private placement of shares in a move that will help it pay off $50 million owed to two founders who were pushed out.
In several separate statements, Momentus announced it had reached an agreement in principle to settle the consolidated securities class action lawsuits against it and some of its current and former directors and officers. The deal involves payment of $8.5 million, at least $4 million of which is expected to be funded by insurance proceeds, leaving Momentus to fund the rest.
Meanwhile, Momentus has signed a securities purchase agreement with an unnamed institutional investor that is supposed to generate $10 million in gross proceeds through a registered direct offering of shares. That placement should occur on Feb. 27.
“The company has also taken other recent steps to extend its cash runway,” Momentus said.
Momentus also revealed a share repurchase agreement for a final payment of $10 million to the two founders, Mikhail Kokorich and Lev Khasis. Kokorich and Khasis were pushed out in January 2021 after the U.S. government expressed national security concerns related to ownership. Momentus said it previously paid $40 million for this purpose.
“Retirement of these issues clears the way for Momentus to continue progress on its vision to provide backbone infrastructure services for the growing space economy,” CEO John Rood said. “We’re eager to support customers in the commercial sector and civil and military government users like NASA and the U.S. Defense Department to use space in more dynamic and impactful ways.”
Nevertheless, the company is adjusting its 2023 launch plans and will fly three Vigoride orbital service vehicles in 2023 on the SpaceX Transporter-6, 7, and 9 missions. Following Vigoride-5, which launched on the Transporter-6 mission Jan. 3, Vigoride-6 is scheduled to launch on Transporter-7 in April. Vigoride-7, which will mark Momentus’ fourth mission, now will loft on Transporter-9 in October, rather than on the Transporter-8 mission slated for June.
