Rocket maker Astra seeks extra time to avert Nasdaq delisting

WASHINGTON, March 16 (Reuters) – Astra House (ASTR.O) this week requested Nasdaq for extra time to convey its inventory value above $1 to keep away from being delisted from the U.S. inventory alternate, the corporate mentioned Thursday because it tries to revamp its rocket enterprise in opposition to monetary headwinds.

Nasdaq advised Astra in October final 12 months that the corporate fell out of compliance with itemizing guidelines when its shares remained beneath $1 for 30 consecutive enterprise days, giving the rocket builder till April 5 to extend the share value or face a booting from the inventory alternate.

With its share value at $0.42 upon closing Thursday, Astra Chief Monetary Officer Axel Martinez wrote in a weblog submit that the area firm formally requested on Monday one other six-month window to lift the share value above $1 for 10 consecutive enterprise days as required to stave off a delisting.

He mentioned the Alameda, California-based firm anticipated to listen to again from Nasdaq round April 5 and “we aren’t conscious of any purpose why our utility wouldn’t be authorised”.

A delisting willpower may deepen Astra’s monetary woes, probably pushing the corporate into a non-public market the place many traders anxious over inflation are ditching the area sector for safer bets.

Nasdaq guidelines state Astra can be elligible for an additional six-month interval if, amongst different necessities, it confirmed an intent to get its share value above $1 in the course of the interval, both from the inventory’s pure efficiency or by executing a reverse-stock break up.

A reverse-stock break up is an typically determined measure wherein an organization merges a sure variety of shares to kind a smaller quantity of proportionally extra invaluable shares.

Astra is predicted to report fourth-quarter outcomes March 30. Inside the subsequent few months, analysts say, the corporate is predicted to supply an replace on growth of Rocket 4, a extra highly effective successor to its earlier rockets that have been cancelled after a number of failures and shifts in market demand.

The corporate’s pivot to the bigger Rocket 4 has been examined by different monetary struggles, together with the collapse this month of Silicon Valley Financial institution, which held 15% of Astra’s money, equivalents and marketable securities.

Astra competes with a handful of different corporations planning bigger rockets like Rocket Lab (RKLB.O), Firefly Aerospace and Richard Branson’s embattled Virgin Orbit (VORB.O). The agency additionally competes with bigger rockets from firms like Elon Musk’s SpaceX, whose missions providing shared rides to area has chiseled away demand for smaller rockets.

Reporting by Joey Roulette;
Enhancing by Stephen Coates

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