Spacehab Incorporated announced today that it has entered into a stock purchasing agreement with certain investors for the purchase of 55,000 shares of the Company’s Series D convertible preferred stock for a total price of $5.5 million. An additional 150,150 shares of common stock were also issued upon the announcement of this purchase agreement.
The entire agreement is contingent upon NASA awarding the company with a funded Space Act agreement under the Commercial Orbital Transportation Services (COTS) program. The award is scheduled to be received by the middle of February, and must be in the amount of $120 million or greater for the stock purchase agreement to go into effect. The Series D convertible preferred stock will be converted into common stock six months after issuance based on a ratio determined by dividing $100.00 by the average of (x) the average of the closing price of the Company’s common stock for the business days January 18-25, 2008 and (y) the average of the closing price of the Company’s common stock for the five business days prior to the Company’s receipt of written notification from NASA indicating the Company’s receipt of a COTS award.
Spacehab Inc is a Webster, Texas based company that has been in business for over 23 years and provides commercial space products and services to NASA, international space agencies, Department of Defense, and private customers worldwide. More specifically, it develops and operates space flight hardware assets, and provides manned and unmanned payload processing services. Spacelab has not turned a profit since 2005, and has experienced strong, yet diminishing sales numbers in the subsequent years. Last year they posted total revenues of $52.7 million, meaning that winning this COTS contract will significantly increase the company’s revenue for upcoming years.
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