Astra defaults on debt settlement, warns it may not be able to raise needed cash


The firm’s LV0010 rocket stands on the launchpad at Florida’s Cape Canaveral forward of the NASA TROPICS-1 mission.

Astra

Struggling house firm Astra disclosed in a securities filing late Friday that it defaulted on a latest debt settlement and may not be able to raise needed cash as funds dwindle.

Astra twice final month failed to meet minimal cash reserve necessities related to a $12.5 million observe issuance to New Jersey funding group High Trail Capital.

The debt raise first required that Astra have “at the very least $15.0 million of cash and cash equivalents” on hand. That liquidity requirement was adjusted after Astra failed to show compliance a primary time, to require “at the very least $10.5 million of unrestricted, unencumbered cash and cash equivalents.”

Having fallen out of compliance a second time, Astra now owes $8 million on the combination principal funding.

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While the corporate is “in continued discussions with quite a lot of different traders,” it warned it “can present no assurance that it will be able to consummate any extra transaction in a well timed method, or in any respect.”

Shares of Astra had been little modified in after hours buying and selling from their shut of about 92 cents a share. The firm performed a 1-for-15 reverse stock split in September to keep away from a Nasdaq delisting, which quickly introduced Astra inventory above $1 a share.

The firm cut 25% of its workforce in early August to shift focus from its rocket growth to its spacecraft engine manufacturing. It’s anticipated to report third-quarter outcomes after market shut on Nov. 13.



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