Summary by Moomoo AI
On December 13, 2024, Momentus entered into a $2 million Loan Agreement with J.J. Astor & Co., maturing on September 19, 2025. The loan is payable in 40 weekly installments of $67,500 and can be prepaid for $2.4 million by January 13, 2025, or $2.7 million thereafter. The loan is secured by a lien on substantially all company assets and will be used for general working capital purposes.Upon default, the loan is convertible to Momentus Class A Common Stock at $5.92 per share before May 5, 2025, and at 80% of the average of the four lowest VWAPs during the 20 trading days prior to conversion thereafter. Momentus also issued warrants to the lender: 28,572 shares at $5.92 per share, and 285,715 shares exercisable upon default at the stock's closing price on the default date.The securities were sold under Section 4(a)(2) and Rule 506(c) of the Securities Act. Momentus agreed to file a resale shelf registration within 31 days and call a special shareholder meeting by March 13, 2025, for approval. Conversion and exercise are limited to 9.99% ownership and subject to Nasdaq rules.
