Voyager Technologies (NYSE:VOYG) dropped its share price by 16.33 percent on Wednesday to end at $31.40 apiece amid the dilution potential of its plan to raise $350 million in fresh funds through the sale of convertible senior notes.
Due on October 15, 2032, the notes would allow holders the right to convert their holdings into Class A common shares, or a combination of cash and shares, based on their preference and election prior to the maturity date.
Voyager Technologies also expects to grant the initial purchasers an option to purchase up to an additional $52.5 million aggregate principal amount within 13 calendar days from the date the notes are issued.
Photo by Tima Miroshnichenko on Pexels
The notes will also be redeemable in full or in part beginning October 21, 2030 at its discretion, through cash payments, but only if the stock price stays at least 30 percent higher than the agreed-upon conversion price for a specific period of time.
Voyager Technologies said that net proceeds are expected to be used for general corporate purposes, as well as funding the cost of entering into the capped call transactions.
Launch-Critical Infra for Next-Gen Rocket
In other news, the company earlier this month announced the successful delivery and integration of quick disconnect plates for the European Space Agency’s (ESA) In-Flight Demonstrator (IFD).
Voyager Technologies performed the work under contract to Avio—ESA’s prime contractor for the PNRR-STS Program—as part of an ESA contract carried out for the purposes of the Italian National Recovery and Resilience Plan (PNRR).
Under the scope of the project, the listed firm designed, built, and integrated a dual-interface QD system: the flight QD, installed internally, and the ground QD, mounted to the rocket’s external surface. These critical interface components connect internal fuel systems to ground infrastructure and are designed to safely detach during launch operations.
Hedge Fund Conviction Weakens
Despite prospects from ongoing geopolitical tensions, hedge fund conviction in the stock weakened in the second quarter of the year.
Data from Insider Monkey showed that during the period, the number of hedge funds fell to 27 from 37 in the quarter prior.
More notably, collective holdings declined by 16 percent to $188 million from $225 million quarter-on-quarter.
Riva Senvest Management is so far its largest hedge fund holder to date with $95.65 million, followed by Alyeska Investment Group with $20 million. Citadel came third at $12.7 million.
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