Astra Space back in the money
November 8, 2023
Last week rocket builder Astra Space was under threat of missing its banking obligations. Now it has confirmed that it had secured interim financing (“additional debt financing”) from a pair of investors that gives it breathing space for a few days in which it must find more cash to stay afloat.
Astra says that JMCM Holdings and Sherpa Venture Funds II, which it adds were affiliates of two early investors in the company, have agreed to provide $13.4 million in “initial financing” as part of a non-binding aim that Astra announced on October 23rd – that was targeting to raise $15 million to $25 million in fresh cash.
The new loan is in place until November 17th and will “provide Astra with time to raise additional liquidity through various capital raising and cost cutting initiatives and strategic transactions,” said the company.
Astra Space is transitioning its core business from building and launching rockets to that of electric rocket engine production. Rocket production is continuing but at a slower pace. A test flight of its Rocket 4 version is scheduled for 2024.
Astra will report Q3 2023 earnings on November 13th.