Penny stock Terran Orbital $LLAP received a $100 million investment which was disclosed on October 31, 2022. The stock did an enormous gap up open on October 31, 2022, on the news.
Terran Orbital Receives $100 Million Investment from Lockheed Martin
On October 31, 2022, Terran Orbital Corporation (NYSE: LLAP), a global leader in satellite-based solutions primarily serving the United States and Allied aerospace and defense industries, announced that it has entered into a note and warrant purchase agreement pursuant to which Terran Orbital received a $100 million investment from Lockheed Martin (NYSE: LMT) in exchange for convertible notes and warrants issued by Terran Orbital.
Terran Orbital and Lockheed Martin also entered into a new Strategic Cooperation Agreement in connection with the investment. The new SCA runs through 2035 and lets Terran Orbital work with Lockheed Martin more.
Terran Orbital plans to use the funds to acquire additional satellite assembly space, increase module production, and satisfy working capital needs. They also plan to expand their advanced manufacturing abilities. Terran Orbital’s advanced manufacturing capabilities, which were originally planned for expansion on Florida’s Space Coast in partnership with Space Florida, have been accelerated and will now be based in Irvine, California. This change is due to Terran Orbital’s recent merger with Space Systems Inc., a leading supplier of advanced antenna and radar systems. In the past year, Terran Orbital has added over 140,000 square feet in Irvine.
Terran Orbitals technologies are innovative and cost-effective. The SCA with Lockheed Martin will make both organizations even more able to share their expertise and relationships to help advance new technology across military, commercial, and civil customers. This will be achieved by focusing on:
- Mission assurance at both the satellite and constellation architecture level
- Speed and schedule to deliver timely solutions for the most demanding and mission-critical customers
- Affordability through innovation with an industrial approach, combined with capacity and facility enhancement to deliver and share an unprecedented value proposition
Terran Orbital believes there are growing opportunities in adjacent markets to the companies satellite offerings. Terran Orbital intends to broaden its product and service offerings to include:
- Payloads including Synthetic Aperture Radar (SAR), Electro-optical, Hyperspectral, Infrared, and Secure Communication
- High reliability satellite subassemblies and component offerings, including, but not limited, to Star Trackers, Flight Computers, Reaction Wheels, Battery Solutions, and Guidance, Navigation and Control solutions
- Mission operations for satellites using Terran Orbital and partner ground networks
- Other defense-related products
The conflict in Ukraine has emphasized the necessity for advanced satellite imagery. Terran Orbital intends to address this demand with a specialized SAR satellite product line based on the companies PredaSAR satellites. Terran Orbital plans to stop trying to build its own constellation and thinks that offering PredaSAR as a product is a financially smart way to get SAR technology to those who are protecting and defending our country and allies.
“In today’s market, customers want the industry to determine the leaders that will deliver timely, quality, and affordable solutions across a variety of missions,” said Terran Orbital Co-Founder, Chairman, and Chief Executive Officer Marc Bell. “This is a continued expansion of our collaboration with Lockheed Martin, and complements and accelerates the decision Terran Orbital made amid the lingering supply chain crisis to continue to vertically integrate products and components to facilitate full in-house satellite and manufacturing production. We see the opportunity to dramatically ramp up our capabilities and external product offerings, which we believe will move Terran Orbital toward profitability.”
Terran Orbital will talk more about the investment and the companies future plans during its Q3 financial results call on Wednesday, November 9, 2022.
Terran Orbital | The Leading Provider of Small Satellite Solutions
Terran Orbital $LLAP Stock Technical Analysis
Terran Orbital $LLAP stock is in a technical downtrend.