- Terran Orbital manufactures small satellites and provides its services in the US and allied aerospace sector.
- The LLAP stock jumped over 26 per cent soon after the market opened on Monday.
- The company had received a US$ 100 million investment from another leading aerospace and defense technology firm.
The stocks of the aerospace and defense firm, Terran Orbital Corporation (NYSE: LLAP) were among the top percentage gainers on the NYSE Monday, as evidenced by the jump in its price. The stock of LLAP stock soared over 26 per cent soon after Wall Street trading started on October 31.
Among its recent developments, the company announced receiving an investment from a leading aerospace and defense technology company.
Amid all these developments, let's dive deep into the recent announcement of the company and see how it may have helped in its recent price surge:
Why is it rising today?
Terran Orbital Corporation, the aerospace and defense company specializes in satellite-focused solutions in the US and allied aerospace. It manufactures small satellites and offers end-to-end satellite solutions to its clients through designing, producing, and launching satellite operations.
The company, on October 31, said that it has received a US$ 100 million investment from Lockheed Martin Corporation (NYSE: LMT). According to the release, it has entered into a note and warrants purchase agreement under which Lockheed Martin would provide a US$ 100 million investment to Terra Orbital for convertible notes and warrants issued by the latter firm.
Concerning the announced investment program, both companies have entered into a new Strategic Cooperation Agreement or SCA, the release showed. The new SCA would run through 2035 while allowing the US$ 437.16 million market cap firm to seek a wider range of opportunities with Lockheed Martin.
Terran Orbital plans to utilize the funds to buy additional satellite assembly space while enhancing its module production and satisfy working capital needs, it said. It also intends to expand its advanced manufacturing abilities.
Notably, the company claimed to have added over 140,000 sq. ft in Irvine alone in the last 52 weeks.
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The price of the LLAP stock increased by 26.37 per cent at 9:33 am ET on Monday, October 31, to trade at US$ 3.235, and its trading volume was about 6.36 million.
Terran Orbital said that the SCA with the leading aerospace and defense firm would help both companies in sharing their expertise and relationship to advance the emerging technologies for defense, commercial, as well as civil clients.