HERNDON, Va. - BlackSky Technology Inc. (NYSE:BKSY), a provider of real-time, space-based intelligence solutions, has priced its underwritten public offering at $4.00 per share. The offering includes 10 million shares of Class A common stock, with potential gross proceeds of approximately $40 million. The closing of the offering is anticipated on September 26, 2024, pending customary conditions.
The company has also granted underwriters a 30-day option to purchase up to an additional 1.5 million shares. Oppenheimer & Co. and Lake Street Capital Markets are serving as the joint book-running managers for the transaction.
BlackSky's registration statement for the offering, under Form S-3 (File No. 333-267889), was filed and became effective as of December 15, 2022. The offering is conducted through a prospectus and prospectus supplement as part of the registration statement. These documents are available on the Securities and Exchange Commission's (SEC) website.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the securities, nor will there be any sale of these securities in any state or jurisdiction where such offer, solicitation, or sale is unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
BlackSky operates a proprietary low earth orbit satellite constellation and the BlackSky Spectra® software platform, providing high-frequency imagery and analytics. The company caters to U.S. and international government agencies, commercial businesses, and organizations worldwide, offering strategic advantages through real-time intelligence.
The press release includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company does not plan to update these forward-looking statements and advises that they should not be relied upon as representing the company's views as of any date subsequent to today.
This article is based on a press release statement from BlackSky Technology Inc.
In other recent news, BlackSky Technology Inc. has announced a public offering of its Class A common stock, with Oppenheimer & Co. and Lake Street Capital Markets serving as joint book-running managers. The company also reported a 29% year-over-year revenue growth in the second quarter of 2024, totaling $24.9 million. This growth was primarily driven by strong demand for its space-based intelligence solutions.
BlackSky has also secured a multi-year contract with NASA, potentially worth up to $476 million, to provide high-revisit satellite imaging data. Furthermore, the company secured $40 million in new contracts and extensions, contributing to a positive adjusted EBITDA for the third consecutive quarter.
BlackSky's Board of Directors has approved a 1-for-8 reverse stock split of its Class A common stock. Meanwhile, H.C. Wainwright upgraded its price target for BlackSky's stock from $2.50 to $15.00, maintaining a Buy rating. Lake Street Capital Markets also reiterated its Buy rating for BlackSky, despite a slight miss in revenue for the quarter. These are the recent developments for BlackSky.
InvestingPro Insights
As BlackSky Technology Inc. (NYSE:BKSY) prepares for its public offering, the company's financial health and market performance are of paramount interest to potential investors. According to InvestingPro data, BlackSky has a market capitalization of $93.23 million, reflecting its current valuation in the market. Despite the challenging financial figures with a negative P/E ratio of -3.19, the company has shown a notable revenue growth of 43.02% over the last twelve months as of Q2 2024.
InvestingPro Tips highlight that BlackSky operates with a significant debt burden and may face difficulties in making interest payments, which is a critical factor for investors to consider. However, the company's impressive gross profit margins, which stand at 69.14%, suggest that BlackSky has a strong ability to control the costs of its goods sold and could be a sign of potential for future profitability.
Looking at the stock's recent performance, BlackSky's share price has taken a considerable hit, with a 1-month total return of -51.91%. This high price volatility is a critical aspect for investors to watch. It's also important to note that BlackSky does not pay dividends, which might influence the investment decisions of income-focused investors.
For those interested in a deeper dive into BlackSky's financials and future outlook, InvestingPro offers additional tips and metrics. As of now, there are 16 more InvestingPro Tips available for BlackSky, which can be accessed for further detailed analysis and investment considerations at https://www.investing.com/pro/BKSY.
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