Space company Astra going private to avoid bankruptcy after dismal public run

In this article

Rocket LV0006 tilts during liftoff.
Astra / NASASpaceflight

Space company Astra will go private in a cut-rate deal with its founders after a dismal run as a publicly-traded stock.

Astra co-founders Chris Kemp and Adam London – CEO and CTO, respectively – signed an agreement with the company’s board to acquire all outstanding common stock at 50 cents a share. The deal is expected to close in the second quarter.

A special committee of the board, with Kemp and London abstaining, voted in favor of the take-private plan. After the founders last month cut their offer from $1.50 a share to 50 cents, the board’s committee emphasized it believed the deal was “the only alternative” to filing for Chapter 7 bankruptcy.

Astra’s stock, halted at 85 cents a share near the time of the announcement, closed at 58 cents a share Thursday.

The company’s market value is about $13 million at current levels, a sliver of the $2.6 billion equity valuation it went public at via a SPAC three years ago.

Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

The San Francisco-area company, incorporated in 2016, once aimed to mass produce small rockets and conduct launches as often as daily.

Since its stock debut, Astra’s rockets reached orbit twice – but the company also suffered three launch failures.

An Astra Spacecraft Engine during testing.

Its rocket-launching business has been on hiatus since a June 2022 mission failure. Despite acquiring a spacecraft propulsion business, the company was unable able to drive meaningful quarterly revenue and conducted layoffs last year in a bid to survive.

The company recorded more than $750 million in net losses since announcing it would go public.

Articles You May Like

New data shows inflation is still high. Here’s how to measure how that affects you
EU probe of weight loss and diabetes drugs like Wegovy, Ozempic finds no link to suicidal thoughts
How Higher Interest Rates Change Tax And Estate Planning Strategies
Op-ed: Allowances are for kids — not your spouse
‘Lose-lose situation’: New Swiss bank laws could derail UBS’ challenge to Wall Street giants

Leave a Reply

Your email address will not be published. Required fields are marked *