Terran Orbital Must Raise its Share Price to Continue Trading

Terran Orbital facility in Irvine, California. Photo: Terran Orbital

Terran Orbital’s stock is at risk of being delisted if the company cannot raise its average share price over $1. 

The New York Stock Exchange sent the satellite manufacturer official notice on Oct. 20 that it is not in compliance with requirements regarding share price. The average closing price of its stock was less than $1 per share over a consecutive 30 trading-day period. 

Terran Orbital said in an Oct. 20 press release that it intends to regain compliance and will enter a six-month “cure period” to regain compliance.  

“The company intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards, including, but not limited to, a reverse stock split, subject to stockholder approval,” Terran Orbital said in a press release. 

Terran Orbital went public in March 2022 through a special purpose acquisition (SPAC) merger. The company builds satellite buses, and has contracts with Lockheed Martin supporting the Space Development Agency (SDA) and Rivada Space Networks. 

Its stock has been trading at under $1 since late September. 

Earlier this month, a group of minority shareholders 8.4% of Terran Orbital’s shares sent a letter to the board of directors with recommendations to raise the company’s share price. This includes separating the role of CEO and chairman and installing a new CEO. Marc Bell currently holds both positions. The group also suggested reconstituting the board and  undergoing a comprehensive strategic review to raise the share price. 

Terran Orbital’s independent directors issued a letter in response, outlining their “continued and unqualified support for Marc and the company’s entire management team.” The independent directors also said the company is currently reviewing strategic options and the shareholder letter did not have any “novel or innovative alternatives that the company has not already considered.” 

Some other space companies that went public through SPACs have struggled to keep share prices over $1. Spire Global executed a reverse stock split to raise the share price and it has worked, with the stock now trading around $3.50. But launcher Astra did the same, and its price fell again below $1.