Sidus Space Stock Plummets 27% Following $25 Million Public Offering Announcement
Sidus Space (NASDAQ:SIDU) shares tumbled 27.1% in after-hours trading Monday despite closing regular trading up 96.5%. The precipitous drop followed the company's announcement of a public offering of 19.23 million shares priced at $1.30 per share.
The space technology firm expects approximately $25 million in gross proceeds from the offering, before deducting underwriting discounts and commissions. Funds will be allocated toward sales, marketing, operations, product development, manufacturing expansion and working capital requirements.
The market reaction highlights investor sensitivity to dilution even after strong trading performance. Sidus Space specializes in satellite-based solutions and recently secured a position in the Missile Defense Agency's SHIELD program, a $151 billion indefinite delivery contract vehicle focused on AI/ML and digital engineering applications.
