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Gravitics plans reverse merger and $125M stock offering

Illustration: Diamondback orbital carrier in orbit
An artist’s conception shows Gravitics’ Diamondback orbital carrier, which is targeted for a debut in 2027. (Gravitics Illustration)

Marysville, Wash.-based Gravitics, which is developing orbital carriers for government and commercial customers, is getting ready for a reverse takeover that could lead to a $125 million public offering.

The arrangements are being made with Non-Invasive Monitoring Systems, a Florida-based shell company, with the goal of getting Gravitics listed on the Nasdaq Stock Market.

The two ventures have been discussing the deal for months. The terms for the public offering were announced last month, and this week, a notice filed with the Securities and Exchange Commission revealed a previously unreported $17 million funding round that was completed earlier this year. The filing appears to be part of the preparations for the reverse takeover.

Similar to a SPAC merger, a reverse takeover offers a faster route for a private company to go public by acquiring a less active shell company and taking control of the combined operations. Non-Invasive Monitoring Systems is a prime example: It stopped manufacturing motorized therapeutic platforms in 2019 but retained its OTC listing. The plan envisions “uplisting” the company from OTC to Nasdaq.

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An unusual $300M deal aims to fund orbital computing

Illustration: Sophia Space satellites lined up in orbit
An artist’s conception shows several Sophia Space satellites in orbit. (Sophia Space Illustration)

Sophia Space and SLI, an aerospace leasing venture based in Washington, D.C., say they’ve agreed on a $300 million asset-financing framework that will support the creation of a 10-satellite constellation for high-performance computing.

The details of the arrangement are as notable as the bottom line: Sophia Space will build the satellites, leveraging the startup’s patented TILE technology for modular in-space data processing. SLI will purchase the satellites under the terms of a financing agreement.

“SLI as the lessor will purchase the satellites from Sophia, hold title to the assets, and lease them to the end user on a long-term basis in exchange for fixed monthly or quarterly payments,” Max Yergan, the company’s senior vice president for investments, explained in an email. “Full control and operational responsibility for the assets sit with Sophia and the end user, who will determine between them how operations are handled.”

Sophia’s satellites are designed to deliver on-orbit edge data services for a wide variety of applications.

“The demand we are underwriting exists today,” Yergan said. “Earth observation, weather and supply-chain analytics, disaster response and defense ISR [intelligence, surveillance and reconnaissance] users all face the same constraint now: They collect far more data than they can bring to the ground, and its value decays while it waits to be downlinked. Processing on orbit addresses that directly.”

The constellation’s first launch is targeted for as early as 2028. SLI would pay out funds linked to development and launch milestones, all the way through verification that the on-orbit network performs to pre-agreed standards.

The arrangement is laid out in a non-binding letter of support. “The non-binding nature is a reflection of where we are in the process, and is typical of large asset financings,” Yergan explained. “It sets the commercial framework so both parties can commit resources while definitive documentation is negotiated.”

Leasing arrangements are often seen in aviation and the maritime industry, but this is a relatively new concept for satellite ventures.

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Are fringe loans bad for your health?

Fringe loan illustration
Researchers at the University of Washington have weighed correlations between the use of fringe loans and self-assessments of health status. (UW School of Public Health Illustration)

For some low-income workers, short-term fringe loans — coming from payday lenders and check cashing services — are a fact of life. But that doesn’t mean they feel good about taking out those loans.

In a newly published study, University of Washington researchers report that people who use fringe loan services, or don’t have access to a bank account, are more likely to say they feel less healthy.

The study, published in the March issue of Health Affairs, makes use of data from 15,000 respondents that was collected for the U.S. Census Bureau’s annual Current Population Survey.

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