Momentus enters five-year master services agreement with Velo3D

Momentus (MNTS) announced it has entered into a five-year master services agreement with Velo3D. According to the terms of the all-stock transaction, Momentus plans to leverage the advanced additive manufacturing capabilities of Velo3D. The company intends to utilize these components both in the company’s satellites, Orbital Service Vehicles, and other space systems, while also selling critical components to customers in the space industry, which the company believes will lead to new revenue streams from sales of components designed by Momentus and produced by Velo3D pursuant to the master services agreement. The master services agreement also contains a provision, under which Velo3D may use capacity not utilized by Momentus to provide services to other customers. According to the agreement, Momentus will be compensated for such use based on a formula equal to 20% of $3M less service fees attributed to Momentus in the first year and 50% of $3M less service fees attributed to Momentus in each subsequent year of the agreement. The term of the master services agreement is five years unless terminated earlier in accordance with its terms. In exchange for the services to be provided by Velo3D, the Company issued an aggregate of 477,455 shares of Class A common stock and 673,408 shares of non-voting Series A Convertible Preferred Stock, par value 0.00001 per share. Each share of preferred stock is convertible into ten shares of Class A common stock, subject to the limitations in the Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Preferred Stock, including that Velo3D hold no more than 9.99% of the outstanding shares of the company’s Class A common stock at any time.