Momentus (MNTS) shares surged 38% in Wednesday's premarket trading after the company said it agreed to sell 2.9 million shares to existing institutional investors through a private placement, with gross proceeds expected to be about $25 million.

The offering, priced at-the-market under Nasdaq rules, is expected to close on or about Thursday, the company said.

Momentus said that it intends to use net proceeds from the offering for working capital and other general corporate purposes.

The company added that existing capital and net proceeds from the offering are expected to leave it with about $76 million in cash, cash equivalents, and short-term investments.