- Astra, a struggling space company, recently revealed in a securities filing that it defaulted on a debt agreement and may struggle to raise necessary funds.
- Last month, Astra failed twice to meet the minimum cash reserve requirements tied to a $12.5 million note issuance to New Jersey’s High Trail Capital, an investment group.
- The company expressed uncertainty, stating that it cannot guarantee its ability to complete any additional transactions in a timely manner or at all.
The company’s LV0010 rocket stands on the launchpad at Florida’s Cape Canaveral ahead of the NASA TROPICS-1 mission.
Astra
Astra, a struggling space company, recently filed a securities report disclosing its default on a recent debt agreement. This default raises concerns about Astra’s ability to generate the necessary funds as its cash reserves dwindle.
In the past month, Astra twice failed to meet the minimum cash reserve requirements associated with a $12.5 million note issuance to High Trail Capital, an investment group based in New Jersey.
Initially, Astra needed to have “at least $15.0 million of cash and cash equivalents” to raise funds. However, after failing to comply on the first occasion, the liquidity requirement was adjusted to “at least $10.5 million of unrestricted, unencumbered cash and cash equivalents.”
Having failed to meet the requirement a second time, Astra now owes $8 million on the principal investment.
Although the company is in discussions with various investors, it cautions that there is no guarantee of successfully completing any additional transactions.
Astra’s shares showed minimal change in after-hours trading from their previous close at approximately 92 cents per share. To avoid delisting from Nasdaq, the company executed a 1-for-15 reverse stock split in September, temporarily boosting Astra’s stock price above $1 per share.
In early August, Astra downsized its workforce by 25% to shift its focus from rocket development towards spacecraft engine production. The company is expected to release its third-quarter results after the market closes on November 13.
