The corporate’s LV0010 rocket stands on the launchpad at Florida’s Cape Canaveral forward of the NASA TROPICS-1 mission.
Struggling space company Astra disclosed in a securities submitting leisurely Friday that it defaulted on a present debt settlement and can no longer be ready to enhance mandatory cash as funds dwindle.
Astra twice final month failed to meet minimal cash reserve requirements associated with a $12.5 million level to issuance to Unique Jersey investment community Excessive Path Capital.
The debt raise first required that Astra obtain “no longer decrease than $15.0 million of cash and cash equivalents” on hand. That liquidity requirement became adjusted after Astra failed to expose compliance a first time, to require “no longer decrease than $10.5 million of unrestricted, unencumbered cash and cash equivalents.”
Having fallen out of compliance a 2d time, Astra now owes $8 million on the aggregate essential investment.
While the corporate is “in continued discussions with a series of other investors,” it warned it “can present no assurance that that is also ready to consummate any extra transaction in a successfully timed system, or at all.”
Shares of Astra obtain been minute changed in after hours procuring and selling from their terminate of about 92 cents a piece. The corporate performed a 1-for-15 reverse stock split in September to lead clear of a Nasdaq delisting, which fleet introduced Astra stock above $1 a piece.
The corporate cleave motivate 25% of its team in early August to shift focal level from its rocket style to its spacecraft engine production. It be anticipated to document third-quarter outcomes after market terminate on Nov. 13.