Summary by Futu AI
Momentus has entered into a $2 million loan agreement with J.J. Astor & Co. on December 13, 2024. The loan matures on September 19, 2025, requiring 40 weekly installments of $67,500. Early repayment options include $2.4 million by January 13, 2025, or $2.7 million thereafter until maturity. The loan is secured by company assets and will be used for working capital.As part of the agreement, Momentus issued warrants to the lender for purchasing up to 28,572 shares at $5.92 per share, plus default warrants for 285,715 shares exercisable upon default. Upon default, the loan becomes convertible to Class A Common Stock at $5.92 per share before May 5, 2025, and thereafter at 80% of the lowest 4 VWAPs over 20 trading days.The agreement includes a 9.99% beneficial ownership limitation for the lender and requires shareholder approval by March 13, 2025. The company must file a resale shelf registration within 31 days for the conversion shares and warrant shares. The securities were issued under Section 4(a)(2) and Rule 506(c) exemptions.
