Intuitive Machines Inc (NASDAQ:LUNR) shares are trading lower Thursday after the company announced an upsized private offering.
What To Know: Intuitive Machines announced the pricing of $300 million of 2.5% convertible senior notes due 2030 in a private offering to institutional buyers. The offering was increased from the previously announced size of $250 million. The company also granted the initial purchasers a 13-day window to buy up to an additional $45 million of the notes.
Intuitive Machines anticipates net proceeds of approximately $291.8 million, or $333.5 million if the initial purchasers exercise their option to purchase additional notes in full. The company had approximately $344.9 million of total cash and cash equivalents as of June 30.
Intuitive Machines plans to use the net proceeds for general corporate purposes, including operations, research and development and potential acquisitions.
CEO Steve Altemus said in the company's earnings release last week that Intuitive Machines continues to "remain opportunistic" about potential strategic M&A opportunities, highlighting a “robust pipeline” of tuck-in and transformative M&A opportunities, particularly in data services and National Security Space markets.
The Notes will accrue interest at an annual rate of 2.5% and mature on Oct. 1, 2030 unless earlier converted, redeemed or repurchased.
How To Buy LUNR Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Intuitive Machines' case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
LUNR Price Action: Intuitive Machines shares were down 11.63% at $9.28 at the time of publication Thursday, according to Benzinga Pro.
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Photo: courtesy of Intuitive Machines.
