Rocket Lab USA Inc (NASDAQ:RKLB) shares fell 10% to about $48 in midday trading on Tuesday after the provider of launch services and space systems revealed in a Securities and Exchange Commission (SEC) filing that it has entered into a new at-the-market (ATM) equity offering arrangement under which it could raise up to $750 million by selling company shares from time to time.
The offering replaces a previous $500 million agreement, under which $396.6 million of company shares were already sold.
Six US banks, including Bank of America, JMP, and Needham, will help facilitate the sales.
Rocket Lab currently holds about $564 million in cash and cash equivalents, as of June 30, 2025.
The company, though, has an annual cash burn rate of nearly $200 million.
Rocket Lab makes small Electron rockets and is developing the new Neutron medium-lift rocket.
Its shares have soared nearly 93% year to date.