Momentus Inc ( MNTS ) shares are tumbling Thursday, pulling back significantly after the stock more than doubled on Wednesday after the company announced a deal to provide launch services for NASA.

What Happened: Momentus ( MNTS ) announced this week that it was selected by NASA to provide launch services for future agency missions through its VADR (Venture-Class Acquisition of Dedicated and Rideshare) contract.

Momentus ( MNTS ) will deliver satellites like Class D, CubeSats, and higher risk-tolerant payloads to a variety of orbits under the NASA contract in an effort to help broaden access to space.

“We’re delighted to be part of the VADR program and to have been selected by NASA to be among its suppliers for the missions under this program,” said John Rood, CEO of Momentus ( MNTS ).

“We’re proud of our Company’s capabilities to provide cost-effective services to launch and support a wide range of payloads in orbit using our flight-proven Vigoride spacecraft and look forward to supporting NASA’s requirements for cutting edge in-space operations.”

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Momentus ( MNTS ) shares surged 155% on Wednesday and closed the day at $1.06 following the news. Momentus ( MNTS ) had a market cap of approximately $27 million as of Wednesday's close. Micro-cap stocks can be extremely volatile, which may help explain some of the outsized move. Momentus ( MNTS ) also has short interest of approximately 5.56%, per Benzinga Pro data.

Momentus ( MNTS ) received a delisting warning in March that gave the company 180 days to raise its stock price to a minimum of $1 per share for 30 consecutive business days. The company announced last month that it received another notice from the Nasdaq indicating the company’s continued non-compliance with the minimum bid price requirement.

“Additionally, the Notice states that since the Company has not yet filed its Form 10-Qs for the periods ended March 31, 2024 and June 30, 2024, it no longer complies with Listing Rule 5250(c)(1), and that these matters individually serve as separate and additional basis for delisting the Company’s securities from The Nasdaq Capital Market,” the company said last month.

Momentus ( MNTS ) said it intended to request a hearing, which would automatically extend the suspension of trading by 15 days. The company also intends to seek extended stay pending the hearing.

“The Company is working to evidence compliance with all applicable requirements for continued listing on the Nasdaq Capital Market and intends to submit a plan to that effect to the Panel as part of the hearing process,” Momentus ( MNTS ) recently said.

MNTS Price Action: Momentus ( MNTS ) shares were down 29.3% at $0.744 at the time of writing, per Benzinga Pro.