August 31, 2009 (FinancialWire) — Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) (Current Market Cap: $104.21 Mil.) said it has priced the sale of around 26 million shares of its common stock to institutional investors at $.72 in a registered direct offering.

The company said it expects to receive net proceeds of around $17.6 million, which it plans to use to repay existing indebtedness. The transaction is scheduled to close on September 2.

Kratos said that the shares sold in the transaction will participate in the one-for-10 reverse split of the company’s common stock, which is scheduled to occur on September 10.

San Diego-based Kratos Defense & Security Solutions provides engineering, IT services and war fighter solutions for the U.S. federal government and for state and local agencies.

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