Redwire Corporation reported it has put in place an equity distribution agreement, dated June 9, that authorizes the sale of up to $500 million of its common stock through at-the-market (ATM) transactions. Shares of the company fell about 7% on Tuesday following the announcement.
The arrangement names 11 financial institutions to act as sales agents. Among the institutions listed are Truist Securities, J.P. Morgan Securities and BofA Securities. Under the terms of the program, those agents may sell shares from time to time on Redwire's behalf and may earn commissions totaling as much as 3% of the gross sale price per share.
Sales under the agreement may be conducted directly on the New York Stock Exchange, on other trading venues where the stock trades, or through market makers. The agents are authorized to execute block trades and to negotiate private transactions as part of the distribution plan. The company emphasized that it has no obligation to effect any sales under this program and that it may pause or suspend the offering at its discretion.
Redwire outlined that net proceeds from any share issuances would be allocated to working capital and other general corporate purposes. The company listed possible uses that include repaying or refinancing debt, pursuing strategic acquisitions or investments, and supporting research and development initiatives. The statement did not commit funds to any specific item and described these categories as potential uses.
The shares covered by the program will be offered pursuant to a shelf registration statement on file with the Securities and Exchange Commission dated August 7, 2025, together with a related prospectus supplement dated June 9. In connection with the new agreement, Redwire terminated a prior equity distribution agreement that had been dated May 6; the company noted there were no termination penalties associated with ending that earlier agreement.
The new distribution agreement will terminate automatically once all shares subject to the program have been sold. Alternatively, either Redwire or the appointed agents may end the agreement earlier by providing written notice.
Market reaction: The announcement coincided with a roughly 7% decline in Redwire's share price on Tuesday, reflecting investor response to the roll-out of the new ATM program.