Astra defaults on debt settlement, warns it could per chance probably per chance no longer be ready to enhance mandatory cash

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.

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