Shares of the company developing a potential replacement for the ISS fell 16%. What alarmed investors?

Shares of Voyager Technologies, a company that supplies defense technology and is developing the Starlab orbital station as a potential replacement for the ISS, plummeted by more than 16% on September 23. Investors were disappointed by the potential dilution of their shares amid the company’s planned offering of convertible bonds.

Voyager shares fell 16.3% to $31.4 on the New York Stock Exchange on September 23. This is the lowest level since early August. The stock continued to decline during morning trading on September 24.

Investors reacted to the potential dilution of their stakes amid the company’s planned offering of convertible bonds, according to the GuruFocus portal. The transaction will total $350 million. Buyers will receive a 13-day option to purchase securities worth up to $52.5 million, according to a Voyager press release.

The 0% bonds will mature in October 2032, according to another announcement. The initial conversion price is approximately $40.82 per share, which is 30% higher than the most recent closing price. These terms are subject to change.

Voyager will be able to convert the securities into shares, cash, or a combination of both, and the company will also have the right to redeem the securities. Proceeds from the transaction, which is expected to close on September 28, are planned to be used for strategic acquisitions and organic growth, according to a press release.

Voyager notes that, concurrently with the bond offering, it entered into "capped call" agreements designed to prevent the dilution of existing shareholders' stakes. The cap on the option transactions will be $78.50 per share, 150% above the last closing price. This means that the anti-dilution mechanism will offset the issuance of new shares as long as their market value does not exceed this threshold.

Voyager, with a market capitalization of $1.9 billion, supplies technology to the defense and aerospace industries. Its propulsion and power system solutions can be used in spacecraft. Voyager's guidance systems operate without GPS.

The company describes itself as the only American supplier of black powder, which is used in firearms and fireworks. Voyager also manages space missions, provides analytical data, and is developing habitable lunar modules and the Starlab orbital station, which could one day serve as an alternative to the International Space Station.

At the end of the second quarter of 2026, the company’s revenue grew 15% year-over-year to a record $52.7 million. The order backlog at the end of the reporting period stood at $335.5 million. This allowed Voyager to raise its full-year 2026 forecast from $230–255 million to $275–305 million, which is approximately 66–84% higher than in 2025.

Voyager went public on the New York Stock Exchange in June 2025. Since then, its stock price has fallen by 55%, but it is up 20% year-to-date.

Eight Wall Street analysts recommend buying the company's stock, while two others recommend selling it. The average price target is $46.7. That is nearly 49% higher than the closing price from the last trading session.