Item 8.01 Other Events.
On October 7, 2020, Stable Road Acquisition Corp.
(“Stable Road” or “Parent”) announced a proposed business combination (the “Proposed Transaction”)
with Momentus Inc. (“Momentus” or the “Company”) pursuant to that certain Agreement and Plan of Merger, dated
as of October 7, 2020, as amended on March 5, 2021, April 6, 2021 and June 29, 2021 (as it may be further amended and/or restated from
time to time, the “Merger Agreement”), by and among Stable Road, Momentus, Project Marvel First Merger Sub, Inc. and Project
Marvel Second Merger Sub, LLC.
On
November 2, 2020, Stable Road filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form
S-4 that included a proxy statement of Stable Road, a consent solicitation statement of Momentus and prospectus of Stable Road. Stable
Road filed with the SEC an amended Registration Statement on Form S-4 on each of December 14, 2020, March 8, 2021, June 29, 2021, July
12, 2021, July 19, 2021 and July 21, 2021 (as amended, the “Registration Statement”). The Registration Statement was declared
effective by the SEC on July 22, 2021. On July 23, 2021, Stable Road filed with the SEC a definitive proxy statement and final prospectus
of Stable Road (the “Proxy Statement”), as supplemented by the Supplemental Disclosures to the Proxy Statement/Prospectus
filed by the Company with the SEC on August 5, 2021 (the “First Supplement”).
This
supplement, dated August 5, 2021, supplements the Proxy Statement, as supplemented by the First Supplement, to reflect, among other matters:
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the
appointment of John C. Rood as Chief Executive Officer on August 1, 2021;
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the
position change of Dawn Harms to Chief Revenue Officer, effective as of August 1, 2021;
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the
appointment of Victorino Mercado on July 26, 2021 to the Momentus board of directors, as the chairperson of the security committee of
the board of directors and as Momentus’ Security Director; Mr. Mercado will also serve as the chairperson of the nominating and
corporate governance committee of the Combined Company Board effective as of the closing of the Business Combination; and
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updates
to the anticipated non-employee director compensation policy to be adopted by the Combined Company Board to reflect payments to the disclosure
committee, increased compensation values and clarification to the transitional equity grants.
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Supplemental
Disclosures to the Proxy Statement
The
following supplemental information should be read in conjunction with the Proxy Statement, as supplemented by the First Supplement, which
should each be read in their entirety. All page references are to pages in the Proxy Statement, and terms used below, unless otherwise
defined, have the meanings set forth in the Proxy Statement.
The
Proxy Statement (which includes a consent solicitation of Momentus) is hereby revised globally to reflect the following:
Interests
of the Momentus Directors and Executive Officers in the Business Combination
The
above section of the Proxy Statement is supplemented with the following:
New
Equity Awards to Executive Officers
In
addition, under the terms of Dawn Harms’ amended and restated offer letter, subject to approval of the Combined Company Board and
contingent on the closing of the Business Combination, Momentus has also agreed to grant Ms. Harms an award of restricted stock units
denominated in Combined Company Class A common stock or restricted shares of Combined Company Class A common stock (in the sole discretion
of the Combined Company Board) with a grant date fair value of $1,625,000.
Momentus
has also entered into an employment agreement with our new Chief Executive Officer John Rood, pursuant to which Momentus has agreed,
subject to approval of the Combined Company Board and contingent on the closing of the Business Combination, to grant Mr. Rood restricted
stock units denominated in Combined Company Class A common stock with a grant date fair value of $10,000,000. Furthermore, if the (i)
closing of the Business Combination occurs and (ii) the Federal Aviation Administration issues Momentus licenses to launch, in each case,
on or before December 31, 2021, Mr. Rood’s 2021 annual cash incentive bonus award will be payable at 100% of his prorated actual
base salary earned in 2021 (which is currently $800,000 per year).
Non-Employee
Director Compensation
Pursuant
to the terms of the offer letter by and between Momentus and Mr. Victorino Mercado, for his service in the roles of Security Director
and chairperson of the security committee of the board of directors of Momentus, Mr. Mercado will receive an annual cash retainer of
$50,000, payable quarterly in arrears and pro-rated for partial quarters of service. In addition, for the first three (3) months of his
service in those roles (which may be extended if warranted by the initial duties), Mr. Mercado is also entitled to a monthly cash retainer
of $20,834.
In
addition, under the terms of the non-employee director compensation policy, which will be adopted and become effective upon the closing
of the Business Combination, Victorino Mercado will receive a cash retainer and an equity award for his service as a non-employee member
of the Combined Company Board and as chairperson of the nominating and corporate governance committee.
Specifically,
Mr. Mercado will receive total annual cash retainers in the amount of $115,000 ($100,000 for service as a member of the Combined Company
Board and $15,000 as chairperson of the nominating and corporate governance committee of the Combined Company Board) and a grant of restricted
stock units denominated in Combined Company Class A common stock with a grant date fair value currently estimated to be $537,500 ((i)
$350,000 plus (ii) $250,000 multiplied by the number of full months expected between the closing of the Business Combination and June
1, 2022 divided by 12, which is currently estimated to be $187,500).
New
Plan Benefits
The
table in the above section of the Proxy Statement under “Proposal No. 5 – Approval of the 2021 Equity Incentive Plan Proposal”
is revised and replaced in its entirety with the table below:
Name
and Position
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Dollar
Value
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Number
of Shares/Units
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John
C. Rood, Chief Executive Officer
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$
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10,000,000
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(1)
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Dawn
Harms, Chief Revenue Officer
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$
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1,625,000
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(2)
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—
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Fred
Kennedy, President
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—
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4,500,000
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(3)
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Jikun
Kim, Chief Financial Officer
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—
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2,500,000
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(3)
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All
current executive officers as a group(4)
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$
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11,625,000
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7,000,000
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All
current directors who are not executive officers as a group
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$
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3,225,000
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(5)
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—
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All
employees, including all current officers who are not executive officers, as a group
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3,943,250
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(6)
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—
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(1)
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Momentus
has entered into an employment agreement with John Rood, pursuant to which Momentus has agreed, subject to approval of the Combined Company
Board, to grant Mr. Rood an award of RSUs having a stated grant date fair value of $10,000,000, which has not yet been granted.
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(2)
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Momentus
has entered into an amended and restated offer letter with Dawn Harms, pursuant to which Momentus has agreed, subject to approval of
the Combined Company Board, to grant Ms. Harms an award of equity having a stated grant date fair value of $1,625,000, which has not
yet been granted.
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(3)
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Momentus
has entered into offer letters with Fred Kennedy and Jikun Kim, pursuant to which Momentus has agreed, subject to approval of the Combined
Company Board, to grant such executive officers (i) a stock option to purchase a fixed number of shares of Combined Company Class A common
stock (each, an "Executive Fixed Award") or (ii) a variable award of equity having a stated grant date fair value of $5,000,000
in the case of Mr. Kennedy and $4,000,000 in the case of Mr. Kim, at the sole discretion of the Combined Company Board. The number of
shares included in this column represents the aggregate number of shares of Combined Company Class A common stock subject to the Executive
Fixed Awards promised in offer letters between the Company and Fred Kennedy and Jikun Kim, in each case, which have not been granted.
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(4)
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Momentus’
current executive officers are John C. Rood, Alexander Fishkin, Dawn Harms, Fred Kennedy and Jikun Kim.
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(5)
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Represents
the maximum potential value of RSU grants to our post-Business Combination Board, as described in the section titled "Non-Employee
Director Compensation Policy" below assuming a Closing Date of August 13, 2021. The number of shares covered by the RSU grants
is not determinable and therefore, not included because such number is based on the dollar amount of the award divided by the closing
price on the grant date.
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(6)
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Momentus
has entered into offer letters with certain new hires, pursuant to which Momentus has agreed, subject to approval of the Combined Company
Board, to grant certain employees stock awards to acquire shares of Combined Company Class A common stock. The dollar value included
in this column represents the aggregate target value of such awards.
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Executive
Compensation Arrangements — Pre-Closing Agreements
The
above section of the Proxy Statement is supplemented with the following:
John
Rood Employment Agreement
On
August 1, 2021, Momentus entered into an employment agreement with our new Chief Executive Officer, John Rood, pursuant to which Mr.
Rood is entitled to an annual base salary of $800,000 per year and an annual target cash incentive bonus, which shall be up to $800,000
in 2021, based upon the achievement of certain objective or subjective criteria determined by the Momentus board of directors and pro-rated
based on actual salary earned in 2021. As described above, Momentus has agreed, subject to approval of the Combined Company Board, to
grant Mr. Rood RSUs having a grant date fair value of $10,000,000. The RSU award will be immediately vested as to 6.25% of the total
number of RSUs on its grant date and will vest as to 18.75% of the total number of RSUs upon August 1, 2022, the
first anniversary of his start date, and as to 25% of the total number of RSUs on August 1, 2023, August 1, 2024 and August 1, 2025,
the second, third and fourth anniversaries of his start date, subject to his continued employment.
Mr.
Rood is also entitled to reimbursement for his commuting (including first class airfare) and temporary housing expenses from his residence
to Momentus’ headquarters as reasonably required and a gross-up payment of any income taxes withheld on such commuting and temporary
housing expenses until the fourth anniversary of his start date. Mr. Rood is eligible to participate in Momentus’ employee benefits
plans maintained by Momentus and generally made available to similarly situated employees. Mr. Rood’s employment is “at-will”
and may be terminated by either party at any time. Mr. Rood is entitled to severance payments and benefits upon a termination of his
employment by Momentus without cause or by Mr. Rood for good reason, as are explained below under “Potential Payments Upon Termination
or Change in Control.”
The
section of the Proxy Statement entitled “Dawn Harms Offer Letter” shall be deleted and replaced with the following:
Dawn
Harms Amended and Restated Offer Letter
On
July 30, 2021, Momentus and Ms. Harms amended and restated her offer letter to reflect her appointment in January 2021 to Interim Chief
Executive Officer. Under Ms. Harms’ amended and restated offer letter, she is entitled to (i) an annual base salary of $350,000
per year, (ii) a one-time bonus of approximately $57,778, the amount of which represents the difference between her prior base salary
of $250,000 and $350,000 for the months of January through July and (iii) an annual cash bonus for calendar year 2021 of $875,000 ($700,000
of which is consideration for her services as interim Chief Executive Officer and $175,000 of which is consideration for her services
as Chief Revenue Officer). For calendar years thereafter, her base salary and annual cash bonus opportunity target and amounts will be
determined by the Momentus board of directors or compensation committee of the board of directors.
As
described above, Momentus has also agreed, subject to approval of the Combined Company Board, to grant Ms. Harms an award of equity (either
RSUs or restricted stock) having a grant date fair value of $1,625,000. Ms. Harms continues to be eligible to participate in the employee
benefits plans maintained by Momentus and generally made available to similarly situated employees. Ms. Harms’ employment remains
“at-will” and may be terminated by either party at any time. Ms. Harms is entitled to certain severance payments and benefits
upon a termination of her employment by Momentus without cause or upon her death or disability, as explained in the section below entitled
“Potential Payments Upon Termination or Change in Control.”
The
equity awards of Ms. Harms and Mr. Rood will be granted under the 2021 Equity Incentive Plan, which is being adopted in connection with
the Business Combination, subject to stockholder approval. For additional information about the 2021 Equity Incentive Plan and these
awards, see the section titled “Proposal No. 5 — Approval of the 2021 Equity Incentive Plan Proposal.”
Potential
Payments Upon Termination or Change in Control
The
Proxy Statement is supplemented by adding the following new section under Executive Compensation Arrangements – Pre-Closing
Agreements:
John
Rood
Under
John Rood’s employment agreement, if Mr. Rood’s employment is terminated by Momentus without “cause” or by Mr.
Rood for “good reason” (as such terms are defined in his employment agreement) and Mr. Rood executes a release of claims,
Mr. Rood will be entitled to (i) the aggregate amount of his base salary and target annual bonus, payable over a 12 month period from
the date of his termination, (ii) a lump sum cash payment equal to his prorated annual bonus for the fiscal year during which Mr. Rood
is terminated, based on actual performance, (iii) reimbursements equal to the portion of the monthly health premiums paid by Momentus
on his behalf and that of his eligible dependents immediately preceding the date that his employment terminates until the earlier of
(a) 12 months following the date of termination and (b) the date that Mr. Rood and his eligible dependents become ineligible for COBRA
coverage, and (iv) his outstanding unvested equity awards will vest as to that number of shares or units that would have vested had Mr.
Rood remained employed until the 12 month anniversary of his termination date.
In
addition, Mr. Rood’s employment agreement provides that if his employment is so terminated in the period beginning three months
prior to and ending 24 months following a “change in control” (as defined in his employment agreement) and Mr. Rood executes
a release of claims, he will be entitled to receive (i) a lump sum payment in the aggregate amount of 18 months of his base salary plus
one and one-half times his target annual bonus, (ii) a lump sum cash payment equal to 150% of his prorated annual bonus for the fiscal
year during which Mr. Rood is terminated based on actual performance, (iii) reimbursements equal to the portion of the monthly health
premiums paid by Momentus on his and his eligible dependents’ behalf immediately preceding the date that his employment terminates
until the earlier of (a) 18 months following the date of termination and (b) that date that Mr. Rood and his eligible dependents become
ineligible for COBRA coverage, and (iv) his outstanding unvested equity awards subject to time vesting will vest in full; provided that
if Mr. Rood remains employed through the consummation of the change in control and the successor to the Company or any affiliate of such
successor does not agree to assume, substitute or otherwise continue such equity awards at the time of the change in control, his equity
awards will vest in full immediately prior to, and contingent upon, the consummation of such change in control.
Dawn
Harms
Under
Ms. Harms’ amended and restated offer letter, if Ms. Harms’ employment is terminated by Momentus without “cause”
(as defined in her amended and restated offer letter), or due to death or her disability, and Ms. Harms executes a release of claims,
she will be entitled to (i) a lump sum cash payment equal to (a) her one-time bonus of approximately $57,778, if it has not already been
paid to her, plus (b) her 2021 annual cash bonus of $700,000 for her role as interim Chief Executive Officer, if not already paid to
her, plus (c) a pro-rated portion (based on days employed during 2021) of her 2021 annual cash bonus of $175,000 for her role as Chief
Revenue Officer, if not already paid to her, and (ii) full accelerated vesting and exercisability of (a) her equity awards granted prior
to the effective date of her amended and restated offer letter and (b) the equity award with a grant date fair value of $1,625,000 that
is provided for in her amended and restated offer letter, but in each case, only to the extent such awards are then outstanding and unvested.
Post-Closing
Employment Agreements
The
above section of the Proxy Statement is supplemented with the following:
Mr.
Rood will continue to be employed by the Combined Company under the terms of his employment agreement with Momentus.
Non-Employee
Director Compensation Policy
The
above section of the Proxy Statement is revised and replaced in its entirety with the below:
Director
Compensation Policy
In
connection with the Business Combination, the Combined Company Board will adopt a new non-employee director compensation policy to govern
the Combined Company Board effective as of the Closing. The new policy is designed to attract and retain high quality non-employee directors
by providing competitive compensation and align their interests with the interests of stockholders through equity awards. It will cover
the compensation of all roles on the Combined Company Board other than the Security Director and the chairperson of the security committee.
Specifically,
the new policy provides for the following annual cash retainers, which will be payable quarterly in arrears and pro-rated for partial
quarters of service:
Annual
Board Member Service Retainer
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All
Outside Directors: $100,000
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Outside
Director serving as Chairperson: $60,000 (in addition to above)
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Outside
Director serving as Lead Independent Director: $30,000 (in addition to above)
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Annual
Committee Member Service Retainer
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Member
of the Audit Committee: $20,000
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Member
of the Compensation Committee: $15,000
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Member
of the Disclosure Committee: $15,000
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Member
of the Nominating and Corporate Governance Committee: $10,000
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Annual
Committee Chair Service Retainer (in lieu of Annual Committee Member Service Retainer)
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Chairperson
of the Audit Committee: $30,000
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Chairperson
of the Compensation Committee: $22,500
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Chairperson
of the Disclosure Committee: $22,500
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Chairperson
of the Nominating and Corporate Governance Committee: $15,000
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Equity
Compensation Beginning at the 2022 Annual Stockholder Meeting
Non-employee
directors will receive RSU grants under the Combined Company’s 2021 Equity Incentive Plan on and after the Combined Company’s
2022 annual stockholder meeting, annually and upon the beginning of service, which will vest, subject to continuous service through the
applicable vesting date:
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RSUs
initially valued at $350,000 upon initial election or appointment to the Combined Company Board, which will vest in three equal annual
installments from the date of grant; and
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Additional
RSUs initially valued at $250,000 annually, which will vest upon the earlier of the first anniversary of the date of grant or the day
before the next annual stockholder meeting, prorated for partial years of service (including the initial year of service).
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Transitional
Equity Grants
Prior
to the 2022 annual meeting of stockholders, in lieu of the RSU grants described above, non-employee directors will receive transitional
RSU grants upon the following terms under the Combined Company’s 2021 Equity Incentive Plan, which will vest, subject to continuous
service through the applicable vesting date:
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Non-employee
directors who serve on or after the Closing (but before the 2022 annual meeting of stockholders) will be granted RSUs initially valued
at $350,000, which will vest in three equal annual installments from the date of Closing.
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Non-employee
directors who serve on or after the Closing will be granted RSUs initially valued at $250,000 multiplied by the number of whole months
that the non-employee director will have served from period beginning on the Closing and ending June 1, 2022, divided by 12, which is
currently estimated to be $187,500. The RSUs will vest upon the earlier to occur of June 1, 2022 and the day before the 2022 annual meeting
of stockholders.
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Accelerated
Vesting
The
vesting of the RSU grants will accelerate in full if the non-employee director remains in continuous service until immediately prior
to such director’s: (i) death, (ii) “disability” or (iii) the closing of a “change in control” (as “disability”
and “change in control” are defined in the Combined Company’s 2021 Equity Incentive Plan).
Other
Terms
To
avoid adverse tax consequences to non-employee directors who reside outside of the U.S., the Combined Company Board, in its sole discretion,
may provide for non-statutory stock options of equal value in lieu of RSU grants, which will have a term of ten years from the date of
grant and an exercise price per share equal to 100% of the fair market value of the underlying Combined Company Class A common stock
on the date of grant. All other terms and conditions that apply to RSU grants under the non-employee director compensation policy will
apply to such options.
If
permitted by the Combined Company, a non-employee director may elect to defer cash retainers and/or RSU awards prior to being earned
into deferred stock units of the Company, which shall settle upon the earlier to occur of the director’s “separation from
service” as defined in the Treasury Regulations under Code Section 409A or the date determined by the Combined Company.
The
Company will reimburse each non-employee director for ordinary, necessary and reasonable out-of-pocket travel expenses to cover in-person
attendance at, and participation in, board of directors and committee meetings, provided they are reimbursed in accordance with the Combined
Company’s travel and expense policy.
Security
Director and Chairperson of Security Committee
In
addition to compensation under the non-employee director compensation policy, Victorino Mercado, as the Security Director and the chairperson
of the security committee of the board of directors of Momentus will receive additional compensation pursuant to the terms of his offer
letter. Mr. Mercado will receive an annual cash retainer of $50,000, payable quarterly in arrears and pro-rated for partial quarters
of service. In addition, for the first three months of his service in those roles (which may be extended if warranted by the initial
duties), Mr. Mercado is also entitled to a monthly cash retainer of $20,834.
Management
After the Business Combination
The
information under “Non-Employee Directors” under “Management After the Business Combination” is supplemented
by adding the following information for Victorino Mercado:
Victorino
G. Mercado, 60, was appointed to the Momentus board on July 26, 2021 after approval by CFIUS in accordance with the NSA. Mr. Mercado
is expected to be appointed by the Combined Company board to continue as the Security Director of Combined Company as a Class III director
whose term will expire at the Combined Company’s annual meeting in 2024.
Victorino
G. Mercado. Mr. Mercado has served as a member of the Board of Directors of Momentus since July 26, 2021. Upon the consummation
of the Business Combination, Mr. Mercado will continue to serve on Combined Company board. From July 2019 to January 2021 Mr. Mercado
served as the Assistant Secretary of Defense for Strategy, Plans, and Capabilities, after being confirmed by the U.S. Senate. Prior to
this, Mr. Mercado served as the Deputy Assistant Secretary of Defense for Plans and Posture from January 2019. From May 1983 to November
2018, Mr. Mercado served in various positions in the U.S. Navy and retired as a two-star Admiral. He held a number of senior operational
and staff positions, including Director, Maritime Operations of the U.S. Pacific Fleet; Director, Assessments Division in the Office
of the Chief of Naval Operations; and Commander, Carrier Strike Group Eight. One of Mr. Mercado’s shore tours was with the Navy’s
engineering and acquisition community as the command, control, communications and intelligence warfare systems engineering manager for
the AEGIS Program Manager. Mr. Mercado holds a B.S. in Mathematics/Computer Science from the U.S. Naval Academy and an M.S. in Systems
Technology in Joint Command, Control and Communications from the Naval Postgraduate School in Monterey, California. We believe Mr. Mercado
is qualified to serve on the Combined Company board because his in-depth experience in security matters will be instrumental in providing
oversight of compliance with the security-related requirements under the NSA and in building a robust security compliance program.
The
information under “Corporate Governance – Committees of the Combined Company Board of Directors” under “Management
After the Business Combination” is supplemented by adding the following after the current paragraph:
“In
addition to the above-referenced committees, the Board will have a security committee and a disclosure committee.”
The
information under “Corporate Governance” under “Management After the Business Combination” is further supplemented
by adding the following after “Security Committee”:
Disclosure
Committee
Following
the consummation of the Business Combination, the board of the Combined Company will determine the members and the chairperson of the
Combined Company’s disclosure committee. The disclosure committee will be overseen by the audit committee and will be responsible
for, among other things:
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Coordinating
and overseeing the formulation, documentation and evaluation of the Company’s disclosure
controls and procedures;
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Periodically
reviewing and assessing the adequacy of the Company’s disclosure policy and guidelines,
including without limitation the Company’s policies regarding public disclosure of
material nonpublic information; and
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Reviewing
drafts of the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K, proxy statements and annual reports to stockholders, and, as
it determines to be appropriate, such other disclosure documents (whether in the form of
SEC filings, press releases or other public communications).
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Additional
Information
This
Current Report on Form 8-K (this “Report”) relates to the Proposed Transaction between Stable Road and Momentus.
In connection with the Proposed Transaction, Stable Road has filed with the SEC a registration statement on Form S-4, as amended (the
“Registration Statement”) that includes a proxy statement of Stable Road, a consent solicitation statement of Momentus and
prospectus of Stable Road, and each party will file other documents with the SEC regarding the Proposed Transaction. The Registration
Statement has been declared effective by the SEC. A definitive proxy statement/consent solicitation statement/prospectus and other relevant
documents have been sent to the stockholders of Stable Road and Momentus, seeking any required stockholder approval, and is not intended
to provide the basis for any investment decision or any other decision in respect of such matters. STABLE ROAD’S STOCKHOLDERS AND
OTHER INTERESTED PERSONS ARE ADVISED TO READ THE EFFECTIVE REGISTRATION STATEMENT AND DEFINITIVE PROXY STATEMENT/CONSENT SOLICITATION/PROSPECTUS
IN CONNECTION WITH STABLE ROAD’S SOLICITATION OF PROXIES FOR STABLE ROAD’S SPECIAL MEETING OF STOCKHOLDERS TO APPROVE THE
TRANSACTIONS CONTEMPLATED BY THE MERGER AGREEMENT, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive
proxy statement/consent solicitation statement/prospectus was mailed to Stable Road’s stockholders as of the record date (July
7, 2021) established for voting on the Proposed Transaction and the other matters to be voted upon at the special meeting of stockholders.
Stable Road’s stockholders are also able to obtain copies of the proxy statement/consent solicitation statement/prospectus, and
all other relevant documents filed or that will be filed with the SEC in connection with the Proposed Transaction, without charge at
the SEC’s website at http://www.sec.gov or by directing a request to: Stable Road Capital LLC, James Norris, CPA, Chief Financial
Officer, 1345 Abbot Kinney Blvd., Venice, CA 90291; Tel: 310-956-4919; james@stableroadcapital.com.
Forward-Looking
Statements
This
Report may contain a number of “forward-looking statements”. These forward-looking statements are based on Stable Road’s
or Momentus’ management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning
future events. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,”
“forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,”
“will,” “should,” “future,” “propose” and variations of these words or similar expressions
(or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These
forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown
risks, uncertainties, assumptions and other important factors, many of which are outside Stable Road’s and Momentus’ management’s
control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks,
uncertainties, assumptions and other important factors include, but are not limited to: changes in domestic and foreign business, market,
financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed business combination,
including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that
could adversely affect the combined company or the expected benefits of the proposed business combination or that the approval of the
stockholders of Stable Road or Momentus is not obtained; failure to realize the anticipated benefits of the proposed business combination;
risks relating to the uncertainty of the projected financial information with respect to Momentus; risks related to the development of
our water-based propulsion system (microwave electrothermal thruster) and other technology, including failures, setbacks or delays in
reaching objectives and other milestones; risks related to the ability of customers to cancel contracts for convenience; risks related
to compliance with the National Security Agreement; risks related to the rollout of Momentus’ business and the timing of expected
business milestones; the effects of competition on Momentus’ future business; level of product service or product or launch failures
that could lead customers to use competitors’ services; developments and changes in laws and regulations, including increased regulation
of the space transportation industry; the impact of significant investigative, regulatory or legal proceedings; the amount of redemption
requests made by Stable Road’s public stockholders; the ability of Stable Road or the combined company to issue equity or equity-linked
securities in connection with the proposed business combination or in the future; and other risks and uncertainties indicated from time
to time in the definitive proxy statement/consent solicitation statement/prospectus relating to the proposed business combination, including
those under “Risk Factors” therein, and other documents filed or to be filed with the SEC by Stable Road. You are cautioned
not to place undue reliance upon any forward-looking statements, which speak only as of the date made.
Forward-looking
statements included in this press release speak only as of the date of this press release. Except as required by law, neither Stable
Road nor Momentus undertakes any obligation to update or revise its forward-looking statements to reflect events or circumstances after
the date of this release. Additional risks and uncertainties are identified and discussed in the Stable Road’s reports filed with
the SEC and available at the SEC’s website at www.sec.gov.
Disclaimer
This
Report is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for
or buy any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transactions or otherwise, nor shall
there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities
shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
INVESTMENT
IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY
PASSED UPON OR ENDORSED THE MERITS OF THE PROPOSED TRANSACTIONS OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Participants
in the Solicitation
Stable
Road, Momentus and certain of their respective directors, executive officers and other members of management and employees may be deemed
participants in the solicitation of proxies of Stable Road’s stockholders in connection with the Proposed Transaction. STABLE ROAD’S
STOCKHOLDERS AND OTHER INTERESTED PERSONS MAY OBTAIN, WITHOUT CHARGE, MORE DETAILED INFORMATION REGARDING THE DIRECTORS AND OFFICERS
OF STABLE ROAD IN ITS ANNUAL REPORT ON FORM 10-K/A FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020, WHICH WAS FILED WITH THE SEC ON JUNE
10, 2021. INFORMATION REGARDING THE PERSONS WHO MAY, UNDER SEC RULES, BE DEEMED PARTICIPANTS IN THE SOLICITATION OF PROXIES TO STABLE
ROAD’S STOCKHOLDERS IN CONNECTION WITH THE PROPOSED TRANSACTION AND OTHER MATTERS TO BE VOTED AT THE PROPOSED TRANSACTION SPECIAL
MEETING IS SET FORTH IN THE EFFECTIVE REGISTRATION STATEMENT FOR THE PROPOSED TRANSACTION. Additional information regarding the interests
of participants in the solicitation of proxies in connection with the Proposed Transaction is included in the effective Registration
Statement that Stable Road filed with the SEC.