Momentus, a US commercial space company that offers satellites, satellite components, transportation, and other in-space infrastructure services, announced it has entered into a five-year master services agreement (“Master Services Agreement”) with Velo3D, a leading provider of additive manufacturing solutions, also referred to as 3D printing.

According to the terms of the all-stock transaction as reported in an 8-K filed by the Company, Momentus plans to leverage the advanced additive manufacturing capabilities of Velo3D for faster, lower-cost production of space system components. The Company intends to utilize these components both in the Company’s satellites, Orbital Service Vehicles, and other space systems, while also selling critical components to customers in the space industry, which will lead to new revenue streams from sales of components designed by Momentus and produced by Velo3D according to the Master Services Agreement.

Momentus intends to leverage advanced additive manufacturing capabilities to:

• Optimize spacecraft design with the potential for lighter, stronger, and more complex geometries, improving overall performance.
• Reduce production costs: Traditional manufacturing methods require extensive machining, whereas additive manufacturing minimizes material waste and accelerates fabrication.
• Enhance component reliability: High-precision 3D-printed parts may contribute to improved durability and mission success.
• Support rapid prototyping: Additive manufacturing allows quick design iterations and faster testing and development.
• Design satellite and space system components that Velo3D will manufacture to supply to customers in the space industry, leading to new product lines and revenue streams.

"We’re pleased to be partnering with Velo3D to leverage the power of advanced manufacturing, to continue to improve the capabilities of our satellites and space systems and aiming to make our low-cost products and services even more cost-competitive," said Momentus CEO John Rood. "We are also excited about the ability to expand our product offerings to create new revenue streams through sales of space system components that are 3D printed.”

The Master Services Agreement also contains a provision under which Velo3D may use capacity not utilized by Momentus to provide services to other customers. According to the Master Services Agreement, Momentus will be compensated for such use based on a formula equal to 20% of $3 million less service fees attributed to Momentus in the first year and 50% of $3 million less service fees attributed to Momentus in each subsequent year of the agreement. The term of the Master Services Agreement is five years unless terminated earlier under its terms.

In exchange for the services to be provided by Velo3D, the Company issued an aggregate of 477,455 shares of Class A common stock and 673,408 shares of non-voting Series A Convertible Preferred Stock, par value 0.00001 per share. Each share of Preferred Stock is convertible into ten shares of Class A common stock, subject to the limitations in the Certificate of Designations of Preferences, Rights and Limitations of Series A Convertible Preferred Stock (Certificate of Designations), including that Velo3D hold no more than 9.99% of the outstanding shares of the Company’s Class A common stock at any time.

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