Astra Space (NASDAQ:ASTR) indicated in a SEC filing on Monday that the company plans a reverse stock split at a ratio of 1 to 15. The company expects the reverse split to take effect before October 2.
Per the filing, Astra Space (ASTR) also plans to raise up to $65M through the sale of shares of Class A Common Stock in an “at the market” offering. In addition to the sales agreement, ASTR continues to evaluate the financing opportunities available to it to strengthen its financial position, including through the issuance of debt securities or additional equity securities. It was noted that the terms of any such financings, if available, may involve restrictive covenants, may require the company to pledge collateral as security, and could restrict the company’s ability to manage its business as it had intended. The issuance of any additional equity securities could also result in further dilution to investors under the sales agreement.
Last month, reports indicated that Astra Space (ASTR) is carving out the spacecraft engine operation as a wholly-owned subsidiary. Astra Spacecraft Engines was incorporated in Delaware on June 5 and filed with California on June 13.
Shares of Astra Space (ASTR) fell 2.99% in postmarket trading to $0.39.