$100 Million Investment
A report from TechCrunch stated that Terran Orbital, a satellite manufacturer, received an additional $100 million investment from Lockheed Martin, with a cooperation agreement for future improvements of smallsats sales that will be effective until 2035 as they create much extensive opportunities from the partnership of the two companies.
Because of this, the stocks of Terran rose to 2.3% in trading to close at $2.62 a share. The first investment of Lockheed Martin with Terran was in 2017 and followed by an additional $36 million investment for the following year.
Plans After the Investment
The funds that the company has received will be used for several improvements for the company, as reported by Space Watch. This includes purchasing an additional satellite assembly space, adding module production, and sustaining capital needs during the expansion for the advanced manufacturing abilities.
Terran will also be constructing a $300 million space vehicle manufacturing facility located in Irvine, California. They added 140,00 square feet at the Irvine facility in the span of 12 months.
This was originally planned to construct in Florida but as per Chief Executive Officer Marc Bell, Terran Orbital already has a substantial footprint that could move facilities faster in California than in Florida.
He stated that in the industry, consumers want a leader that delivers a timely, quality, and affordable solution to several missions that the company faces.
"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," Bell stated.
Like many space stocks that were hit hard by global inflation, CNBC reported that Terran was one of the companies that seek to be capitalized. Alongside with Terran was Virgin Orbit as the two companies were tapping Lockheed Martin for several deals.
On Monday, Terran noted that the building of its own constellation satellites will be discontinued as they will be using instead the company's existing PredaSAr technology where they can offer products that are specialized to Earth imagery.
This article is owned by TechTimes
Written by Inno Flores
