Sidus Space doubles on inclusion in defense program, then freefalls on stock offering

Shares of micro-cap space services provider Sidus Space nearly doubled during the regular session on Monday, December 22, before giving back much of the gain after hours, as investors reacted to two closely timed announcements: the company’s inclusion in a U.S. missile-defense program and a discounted share offering.

Sidus Space shares jumped 97.4% on the Nasdaq on Monday to close at $2.29 apiece, their best finish since February. In extended trading later, the stock fell about 40%, however. The selloff has continued in early trading on Tuesday, with shares down roughly 38%.

The sharp reversal followed two company announcements released within hours of each other.

Earlier in the day, Sidus disclosed that it had been selected as one of the participants in the Missile Defense Agency’s Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program. The $151 billion program is part of the broader Golden Dome missile-defense plan and is aimed at developing layered protection against air, missile, space, cyber, and hybrid threats.

After the close of trading, the company announced a public offering and later disclosed its terms. Sidus plans to raise about $25 million by selling just over 19.2 million shares at $1.30 apiece, a 43% discount to the stock’s closing price on Monday.

Sidus Space was founded in 2021 by Carol Craig, a former U.S. Navy flight officer who later established engineering firm Craig Technologies and subsequently spun off its manufacturing division into Sidus.

The company is developing a constellation of LizzieSat satellites that allow customers to integrate their own sensors and technologies to collect space-based data. Sidus has launched three satellites to date, with each successive mission described by Craig as cheaper and more capable than the previous one.

In its third-quarter report, Sidus said revenue fell 31% year over year to $1.3 million, citing a strategic shift away from legacy services. The net loss for the quarter widened nearly 54% to $6 million.

Sidus shares are down more than 53% year to date.

The stock is covered by a single Wall Street analyst, according to MarketWatch data, who rates the shares a “buy” with a target price of $10 per share, for more than fourfold upside from current levels.