Redwire Launches $500M ATM Offering as Shares Drop Nearly 8%
RDW•Redwire disclosed a $500 million at-the-market equity offering to boost working capital, debt refinancing, acquisitions and R&D, prompting an almost 8% premarket share slump. The company’s contract backlog stood at just under $500 million at Q1 end, supported by ISS greenhouse and UAS awards worth tens of millions.
1. ATM Equity Offering Details
Redwire announced plans to raise up to $500 million through an at-the-market offering of its common stock, aiming to strengthen working capital, refinance debt, fund acquisitions, support investments and finance ongoing R&D initiatives.
2. Strong Backlog and New Contracts
At the end of the first quarter, Redwire’s contract backlog was just under $500 million. Recent wins include a greenhouse-based strawberry cultivation and soil-enhancement trial on the International Space Station and unmanned aerial system contracts worth tens of millions for the U.S. Army and a NATO member.
3. Share Price Reaction
Following the equity offering announcement, Redwire shares fell nearly 8% in premarket trading, becoming one of the most actively discussed stocks on retail platforms despite continued bullish sentiment among some investors.
