Defense and space tech firm Voyager plunges 16% on shareholder dilution concerns

Shares of Voyager Technologies, a provider of defense and space systems that is developing the Starlab orbital station as a potential replacement for the International Space Station, plunged more than 16% on Wednesday. The selloff reflected concerns about potential shareholder dilution from a planned convertible note offering.

Voyager fell 16.3% on the New York Stock Exchange on Wednesday to $31.40 per share, its lowest close since early August. The stock continued to slide in early trading Thursday.

The market was reacting to potential shareholder dilution from a planned convertible note offering, writes GuruFocus. The offering is for $350 million. Initial buyers will receive a 13-day option to buy up to an additional $52.5 million of the notes, Voyager said in a press release. The 0% notes mature in October 2032, according to a separate release. The initial conversion price is approximately $40.82 per share, 30% above the last close. The terms are subject to adjustment.

Voyager may settle conversions in shares, cash, or a combination of the two, and will also have the right to redeem the notes. The proceeds from the transaction, which is expected to close next Monday, September 28, will be used for strategic acquisitions and organic growth, the release said.

Voyager said it entered into capped call transactions alongside the note offering to limit dilution for existing shareholders. The options have a cap price of $78.50 per share, 150% above the last close. This means the hedge will offset dilution until the stock’s market price rises above that threshold.

Voyager, which has a market capitalization of $1.9 billion, supplies technology to the defense and aerospace industries. Its propulsion and power systems are used in spacecraft, while its guidance systems can operate without GPS.

The company describes itself as the only U.S. supplier of black powder, which is used in firearms and fireworks. Voyager also manages space missions, provides analytics, develops lunar habitats, and is building the Starlab orbital station, which could eventually serve as an alternative to the International Space Station.

In the second quarter of this year, the company’s revenue rose 15% year over year to a record $52.7 million. Meanwhile, its order book stood at $335.5 million at the end of the period. This prompted the management to raise its full-year 2026 revenue guidance from $230-255 million to $275-305 million, around 66-84% above the actual 2025 level.

Voyager went public through an IPO on the NYSE in June 2025. Since then, the stock has lost 55%, though it is up 20% year to date. The stock has eight “buy” calls versus two “sell” ratings, according to MarketWatch data. The average target price is $46.70 per share, implying almost 49% upside from the last close.