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In-space transportation company Momentus has successfully executed a reverse stock split in order to raise the price of its shares and continue trading on the Nasdaq stock exchange. The reverse stock split took place at a ratio of 1-for-50, meaning that every 50 shares of Momentus will now become one share. This reduces the number of outstanding shares of common from approximately 98 million shares to approximately 2 million shares. The adjusted shares began trading on the following day.

The reverse stock split was carried out to ensure that Momentus complies with the minimum bid price requirement for maintaining its listing on Nasdaq. Additionally, the company aims to make its bid price more attractive to a broader group of institutional and retail investors. Momentus shareholders had previously approved this action, as the company’s shares have been trading below for a significant period of time.

Currently, Momentus operates two orbital service vehicles (OSVs) in space and has recently announced plans to manufacture satellite buses based on the Vigoride. Despite celebrating a successful first quarter with more than million in revenue, the company is experiencing a serious cash crunch that jeopardizes its future. The second quarter saw a net loss of .8 million, leaving Momentus with only million in cash and cash equivalents at the end of the period. In order to sustain operations, the company has disclosed the need to raise a significant amount of additional capital within the next year.

Momentus went public two years ago as part of the SPAC (special purpose acquisition company) trend. The company had faced regulatory issues related to national security concerns in the U.S. Other space SPACs, such as Spire Global and Astra, are also considering reverse stock splits to ensure continued trading.

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