Momentus Wins Defense Department Contract Expansion, Stock Skyrockets

Shares of space infrastructure services provider Momentus Inc MNTS are surging on Monday.

The U.S. commercial space firm, which focuses on satellite buses, transport, and in-space services, has secured an expanded contract from the U.S. Department of Defense organization Defense Advanced Research Projects Agency (DARPA).

The agreement is for an in-orbit demonstration of assembling large-scale structures, with a planned launch as soon as 2026 on SpaceX’s Transporter rideshare mission.

Momentus will offer full support for DARPA's Novel Orbital and Moon Manufacturing, Materials, and Mass-efficient Design (NOM4D) initiative, which includes managing the launch, integrating the payload, and hosting the assembly mission in orbit.

“Cost-effective assembly of structures in space has the potential to transform how we operate in space. Structures that are too large to fit within the shroud of a launch vehicle can be robotically assembled in space, leading to less complex and cost-effective structures like large communications antennas, hubs for orbital manufacturing of advanced materials and potentially products like semi-conductors, and the repair and upgrade of space systems,” said Momentus CEO John Rood. 

The goal of the mission is to test the functionality and dependability of the in-space assembly payload in Low Earth orbit (LEO) with the company’s Vigoride Orbital Service Vehicle.

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Momentus received the original NOM4D contract in April 2024 and has finished the first two phases of the agreement. The Phase 3 of the contract is valued at around $3.5 million.

The NOM4D initiative aims to develop the foundation for constructing durable, precise structures in space. This project is intended to enable in-orbit manufacturing of materials such as solar arrays and antennas, specifically designed to withstand the unique environment of space.

This mission represents Momentus’ fourth Vigoride mission and its first partnership with DARPA.

Also, Momentus has priced a single institutional investor purchasing about 1.27 million shares of the company's and warrants to buy an additional 1.27 million shares at a total price of $3.925 per share.

The warrants will have an exercise price of $3.80 each, be immediately exercisable, and will expire five years after the initial exercise date.

The offering is expected to close on or about February 11, 2025, with an estimated total proceeds of about $5 million.

The company intends to use the offering net proceeds for advancement for general corporate purposes.

Price Action: MNTS shares are trading higher by 40.3% at $5.33 at the last check Monday.

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