Shares in Astra closed July 10 at 40.2 cents per share, which would be $6.03 after the reverse split. Shareholders had approved a proposal at the company’s annual shareholder meeting June 8 to allow the board to enact a reverse split of between 1-for-5 and 1-for-15. Astras goal is to eventually launch as many of its small rockets as it can, aiming to launch one rocket a day by 2025 and drop its 2.5 million price point even further. That will have the effect of boosting the share price but not the company’s overall market cap. Under that plan, 15 shares of existing Astra stock will be exchanged for one new share of Astra stock. The company won a 180-day extension on April 10.Īstra said July 10 that its board had approved a plan for a 1-for-15 reverse stock split that will occur no later than Oct. Astra was originally given 180 days by Nasdaq, starting in October 2022, to get its share price above $1 for at least 10 consecutive business days. The company was considering at the time both debt and equity options to raise additional cash to keep the company operating as it continues work on Rocket 4, which the company does not anticipate entering commercial service until some time in 2024.Īstra also faced a potential delisting of its stock from the Nasdaq because its price had fallen below $1 per share. The company reported no revenue in the first quarter.Īstra executives said on an earnings call May 15 they projected ending the second quarter with $30 million to $33 million of cash remaining. Astra reported having $62.7 million in cash as of the end of the first quarter, with a net loss of $44.9 million. The stock sale comes as the company was running low on cash. After nearly a year of struggling to bump its stock price above the Nasdaq minimum and avoid delisting, Astra (ASTR) has officially decided to perform a. Astra stock soars after launching first successful rocket CNN Business. As of 3:40 ET, stock prices were down to 3.59 a share, 33 percent lower than yesterday’s closing price of 5.29. That includes development of its next-generation launch vehicle, Rocket 4, as well as continued production of its Astra Spacecraft Engine electric thrusters. Introducing a disruptive, innovative & revolutionary new engine Technology that will change the automotive, aerospace, marine & recreational vehicles. Astra’s stock tumbled sharply on Thursday as the launch failure became apparent. Net proceeds from the stock sale, the company said, would go towards working capital and general corporate purposes.
Securities and Exchange Commission published after the markets closed, Astra said it had signed a sales agreement with Roth Capital Partners under which it will sell up to $65 million of its stock in an “at-the-market” offering, where shares are sold at the going market rate. WASHINGTON - Faced with dwindling cash and a stock delisting, Astra Space announced plans July 10 to perform a reverse split of its stock and sell up to $65 million of it.
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