- Astra’s founders have proposed taking the company private at a value of $30 million, according to a securities filing on Thursday.
- Chris Kemp, chairman and CEO, and Adam London, chief technology officer, presented a proposal to acquire all outstanding stock at $1.50 a share.
- Astra’s rocket launching business has been on hold since a June 2022 mission failure, and the company is facing a cash crunch.
Astra tests a rocket at its headquarters on the San Francisco Bay in Alameda, California.
Astra
The founders of Astra have proposed taking the company private at a $30 million valuation, as per a securities filing on Thursday.
Chris Kemp, chairman and CEO, and Adam London, chief technology officer, delivered a proposal to the Astra board of directors on Wednesday to acquire all outstanding stock at $1.50 a share.
This offer represents a 103% premium to the previous day’s closing price of 74 cents per share, reflecting a market value of approximately $16 million.
Since the June 2022 mission failure, Astra’s rocket launching business has been halted, and the company is facing a cash shortage. Despite acquiring a spacecraft propulsion business, revenue has not been substantial. Astra also laid off 25% of its staff in August to focus on spacecraft engine production over rocket development.
Last month, Astra’s cash reserves fell below $10.5 million, leading to a debt default. However, the company raised financing from investors to pay off this debt on Monday.
Astra, which went public through a SPAC merger at a $2.6 billion valuation in February 2021, aimed to produce small rockets inexpensively and quickly. Despite two successful orbits, the company faced three launch failures after its public debut.
