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Momentus Inc. secures $500K through director loans

Published 02/07/2024, 22:32
MNTS
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Momentus Inc (NASDAQ:MNTS)., a space infrastructure company, has entered into secured loan agreements with several of its directors and officers, according to a recent 8-K filing with the Securities and Exchange Commission. The agreements, effective as of June 21, 2024, involve the issuance of promissory notes totaling $500,000 to directors Brian Kabot, Paul Ney, Chris Hadfield, John Rood, Victorino Mercado, and Mitchel Kugler.

The secured notes, bearing an interest rate of 5.12% per annum, are to mature on September 30, 2024. The funds are primarily allocated for employee retention payments and note expenses, with the remainder for working capital and general corporate purposes. These obligations are backed by senior liens on nearly all of Momentus Inc.'s assets.

In addition to the financial arrangement, the company's annual stockholder meeting on June 28, 2024, resulted in the election of four directors and the ratification of Frank, Rimerman + Co. LLP as the independent auditor for the fiscal year 2024. The meeting also saw the approval of the repricing of certain existing warrants issued to an institutional investor.

The elected directors include Chris Hadfield and John C. Rood, who will serve until the 2026 Annual Meeting, and Linda J. Reiners and Victorino G. Mercado, who will serve until the 2027 Annual Meeting. The ratification of the company's auditors and the warrant repricing proposal received a majority of votes from the stockholders.

In other recent news, Momentus Inc. has been granted an extension by Nasdaq to meet its filing requirements after failing to file its quarterly report on time. The company now has until October 14, 2024, to file the overdue Form 10-Q. However, Momentus has not provided a definitive filing date, leading to some uncertainty for investors. In a strategic move, Momentus has partnered with the Defense Advanced Research Projects Agency (DARPA) to support the development of technologies for constructing large-scale structures in space. Additionally, Momentus has announced a partnership with Ascent Solar Technologies to market a new solar array solution. This collaboration aims to meet the growing demand for efficient and cost-effective solar power in space. Lastly, a notable change in leadership has occurred, with Lon Ensler appointed as the interim Chief Financial Officer (CFO), following the departure of Eric Williams. These are among the recent developments at Momentus Inc.

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