The company’s LV0010 rocket stands on the launch pad in Cape Canaveral, Florida, ahead of the NASA TROPICS-1 mission.
astra
A struggling space company astra disclosed in Securities registration statement It was revealed late Friday that the company may not be able to honor its latest debt agreement and raise the cash it needs amid dwindling cash.
Last month, Astra twice failed to meet minimum cash reserves requirements for a $12.5 million bond issue to New Jersey investment group High Trail Capital.
The debt increase would first require Astra to have “at least $15 million in cash and cash equivalents” on hand. The liquidity requirements were adjusted after Astra failed to demonstrate compliance for the first time, requiring “at least $10.5 million in unrestricted and unencumbered cash and cash equivalents.”
Due to the second non-compliance, Astra now owes $8 million on its total principal investment.
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The company is in “ongoing discussions with a number of other investors” but cautioned that “there can be no assurance that we will be able to complete additional transactions in a timely manner or at all.”
Astra shares were little changed from their closing price of about 92 cents per share in after-hours trading. The company conducted a 15-to-1 reverse stock split in September to avoid delisting from the Nasdaq, sending Astra stock briefly above $1 a share.
The company cut its workforce by 25% in early August as it shifted its focus from rocket development to spacecraft engine production. Third quarter results are scheduled to be announced after the market closes on November 13th.
