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In order to continue trading on the Nasdaq stock exchange, in-space transportation company Momentus has executed a reverse stock split. This move aims to increase the price of its shares. The reverse stock split was completed on August 23 at a ratio of 1-for-50. This means that every 50 shares of Momentus will be consolidated into one share, reducing the number of outstanding shares from 98 million to 2 million.

Momentus has undertaken this reverse stock split to comply with the minimum bid price requirement for maintaining the listing of its common stock on Nasdaq. Additionally, the company believes that increasing the bid price will attract a wider range of institutional and retail investors.

Despite receiving approval from its shareholders, Momentus has been facing financial challenges. Its shares have been trading at under since the end of 2022. The company’s net loss in the second quarter was .8 million, and it only had million in cash and equivalents on hand at the end of the quarter. The company has disclosed that it lacks sufficient funds to support its operations for the next year and needs to secure substantial additional capital.

Momentus currently operates two orbital service vehicles (OSVs) in space and has plans to manufacture satellite buses based on the Vigoride. The company recently achieved a milestone of generating over million in revenue for the first quarter.

In an effort to ensure their shares continue trading, other space SPACs such as Spire Global and Astra are also planning reverse stock splits.

It will be interesting to observe the impact of these strategies on the future prospects and financial stability of these companies in the space industry.

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