Private Placement Financing Announced by BlackSky
BlackSky Technology has entered into definitive agreements with a syndicate of new and existing institutional investors for private placement financing through the issuance and sale of 16,403,677 shares of the Company’s Class A common stock (“common stock”) and warrants to purchase up to an additional 16,403,677 shares of common stock. The per share purchase price is $1.79, and each investor will receive an equivalent number of warrants with an exercise price of $2.20. The warrants will become exercisable six months after issuance and have a term of five years from the initial exercise date. The private placement is expected to close by March 8, 2023, subject to the satisfaction of customary closing conditions.
The gross proceeds from the private placement financing total approximately $29.5 million before deducting placement agent fees and other offering expenses payable by the Company. BlackSky intends to use the net proceeds from the private placement for general corporate purposes and investments in its space and software platforms.
Jefferies LLC Acted as the Sole Agent for the Private Placement Financing
The securities to be sold in the private placement and described above are being made in a transaction not involving a public offering and have not been registered under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and/or Rule 506(b) of Regulation D promulgated thereunder or applicable state securities laws. Accordingly, the securities in the private placement may not be resold in the United States except pursuant to an effective registration statement with the Securities and Exchange Commission (the “SEC”) or an exemption from registration under the Securities Act and any applicable state securities laws.
The Company has agreed to file a registration statement with the SEC covering the resale of the shares of the common stock and the shares of common stock underlying the warrants in the private placement no later than 45 days following the closing of the private placement.
(Source: BlackSky news release. Images from file)