Astra Requests an Extension to Keep away from Nasdaq Delisting

Gravity could also be a troublesome opponent, but it surely’s received nothing on the unrelenting forces of public markets. 

On Thursday, launch startup Astra ($ASTR) introduced that it has requested further time from Nasdaq to spice up its share worth and keep away from a delisting. 

Astra’s highway: Over the past couple of years, the Alameda, CA firm has struggled to persistently attain orbit with its small launcher car. After a mission for NASA failed final summer time, Astra scrapped all its remaining flights for 2022; retired its 3.3 car; and introduced an accelerated growth timeline for the bigger Rocket 4.0. 

  • The general public markets responded unfavorably, sending $ASTR down from a peak of $21.25 in the course of the frothy peak of the 2021 SPAC increase to simply $0.42 as of this writing. That’s a 98% peak-to-trough decline, for these conserving monitor at residence. 
  • On October 6, NASDAQ despatched Astra a letter warning the corporate that it wanted to carry the inventory worth over $1.00 or danger getting booted from the trade. 

Yesterday’s extension request, if granted, would give Astra 180 extra days to spice up its inventory worth. The corporate plans to clear $1 both organically by efficiency enchancment or  artificially with a reverse inventory break up. 

“Based mostly on our discussions with representatives of Nasdaq, we count on to listen to again from Nasdaq concerning the standing of our utility on or round April 5, 2023, and we aren’t conscious of any motive why our utility wouldn’t be authorized,” Astra CFO Axel Martinez stated

Bumpy week for launch corporations: The Astra request comes simply days after CNBC reported that Virgin Orbit, one other public rocket firm, was halting operations and briefly furloughing almost all of its staff and because it has equally struggled to ship its rockets to orbit. 

The upshot: Astra and Virgin Orbit are deeply unprofitable, cash-burning machines in a public market that has misplaced endurance for long-horizon companies. With increased rates of interest making it tough to entry further capital, the 2 rocket corporations face a steep climb to outlive as publicly traded corporations. 

What to look at for: Astra will report This autumn on the finish of the month. As for Virgin Orbit, count on to see some kind of replace on the corporate’s future within the coming weeks.

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