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Rocket Lab shares rise in premarket on satellite launch updates
The company said eight satellite platforms built for MDA Space reached orbit on Aug. 15, with commissioning underway.
Rocket Lab stock was slightly higher in Monday premarket trading, moving nearly 1% up as technology stocks gained. Nasdaq futures rose 0.42% and S&P 500 futures added 0.13%, according to Yahoo Finance.
Beyond the tape, Rocket Lab said eight satellite platforms it built for MDA Space Ltd. successfully reached orbit on Aug. 15. The satellites are the first of 17 platforms under a $143 million deal and are intended to replenish Globalstar’s constellation supporting direct-to-device communications and Internet of Things services.
Rocket Lab said it has contacted all eight satellites and they are generating power and performing as expected, with commissioning now underway. The 500-kilogram spacecraft use customized versions of Rocket Lab’s Lightning platform, and the company is also producing Lightning platforms for U.S. Space Force and Space Development Agency missions.
Rocket Lab also noted that it entered a replacement equity distribution agreement allowing it to sell up to $1.94 billion of common stock from time to time. The company said net proceeds are intended to fund cash payments tied to its proposed acquisition of Iridium Communications and to reduce committed senior secured debt facility obligations, with any excess supporting future growth and general working capital.
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