Momentus Inc., a U.S.-based commercial space company offering satellite buses, transportation, and various in-space infrastructure services, has announced a significant corporate move aimed at strengthening its position on the Nasdaq stock exchange. The company revealed it will implement a 1-for-14 reverse stock split of its Class A common stock, which will become effective on December 12, 2024, at 5:00 p.m. Eastern Time. This adjustment will reduce the number of outstanding shares and is part of the company’s efforts to comply with Nasdaq’s listing rules and increase the attractiveness of its stock to investors.
The reverse stock split means that every 14 shares of Momentus’ Class A common stock currently held by stockholders will automatically convert into one share of common stock. As a result, the total number of outstanding shares will decrease from approximately 31 million to around 2 million. Importantly, the reverse stock split will not affect the percentage of ownership for individual stockholders, aside from any fractional shares, which will be rounded up to the nearest whole share.
Momentus Inc.’s stock will continue to trade on the Nasdaq Global Select Market under its existing ticker symbol, “MNTS,” and the reverse split-adjusted shares will begin trading when the market opens on December 13, 2024. The company has also confirmed that its stock will retain the same CUSIP number, 60879E309, following the reverse stock split.
This reverse stock split was approved during a special meeting of stockholders held on December 2, 2024, a key step in moving forward with the transaction. In addition to the reduction in the number of shares, the company’s outstanding public warrants and equity-based awards, as well as shares or share units issued under the company’s benefit plans, will be proportionally adjusted. This means that the price for exercise or conversion of warrants, options, or other securities will reflect the reverse stock split to ensure consistency with the adjusted share count.
A significant factor driving this decision is the company’s efforts to meet Nasdaq’s minimum bid price requirement for continued listing. Nasdaq mandates that the common stock of a listed company must maintain a minimum bid price of $1.00 per share. Momentus’ reverse stock split is a strategic move to ensure that its stock price meets this crucial threshold, allowing the company to retain its listing on the exchange. This action is expected to make the company’s stock more appealing to a broader range of institutional and retail investors, thereby enhancing its market liquidity and stability.
It is important to note that no fractional shares of common stock will be issued as part of the reverse stock split. Instead, any stockholder who would otherwise hold a fractional share due to the reverse split will receive a full additional share to round up their position. This approach ensures that all shareholders will continue to hold whole shares of Momentus stock after the split, preventing the need for small or fractional share transactions.
The reverse stock split was formalized through the filing of a Certificate of Amendment to the company’s Second Amended and Restated Certificate of Incorporation, which was accepted by the Secretary of State of Delaware on December 9, 2024. Despite the change in the number of shares issued and outstanding, there will be no alteration to the total number of authorized shares of Momentus’ common stock as defined in the company’s existing charter.
Momentus’ management believes that this move is an important step in the company’s long-term strategy to position itself for sustained growth and to meet the demands of its investor base. By increasing the stock price, the reverse stock split is expected to provide greater opportunities for institutional investors and appeal to a broader range of market participants, while ensuring the company’s compliance with the listing rules of the Nasdaq Global Select Market.
As the space industry continues to grow, Momentus aims to solidify its place as a leading provider of innovative space infrastructure services, with the backing of a stronger and more investor-friendly stock position.
