Astra to raise $65m
July 12, 2023
By Chris Forrester
Struggling rocket developer Astra Space is to conduct a 1-for-15 stock split and in the process raise around $65 million (€58.9m) to continue its work on its Rocket 4 launch vehicle.
The 1-for-15 stock split will issue one new share to stockholders in a swap for 15 existing shares.
The company’s filing with the SEC says Astra has signed an agreement with lenders Roth Capital Partners under which it will sell up to $65 million of these new shares at the going market rate. The swap will happen on or about October 2nd. Astra’s Board approved the move on July 6th.
The fresh cash will go towards its working capital and general corporate purposes. That includes development of a claimed next-generation launch vehicle, Rocket 4, as well as continued production of its Astra Spacecraft Engine electric thrusters.
The new share structure will get the company out of problems with the NASDAQ market where rules require businesses to maintain a share price above $1 per share. Falling below $1 would mean a delisting.
Astra’s share price on July 10th was at 40 cents/share, a fall of 97 per cent since the company’s high value in July 2021.
Astra Space says its Rocket 4 vehicle will make its debut test flight (dubbed ‘Alpha’) later this year. It is capable of carrying 600 kgs into orbit. Its Rocket 3.3 version, launched in June 2022 but failed shortly after launch.
Astra’s Spacecraft Engines electric thruster division has orders to produce at least 278 products for specific clients and is planning to manufacture some 500 units annually.