Astra CEO Chris Kemp speaks at the company’s headquarters during the Spacetech Day, May 12, 2022.
Brady Kenniston/Astra
Spacecraft engine manufacturer and small rocket builder Astra intends to conduct a reverse stock split at a ratio of 1 to 15, the company announced in a stock exchange submit Monday.
Astra is also seeking to raise up to $65 million through an “on the market” offering of common stock, the filing said.
Shares of Astra were little changed in after-hours trading from their close at 40 cents a share. The company went public in July 2021 through a SPAC deal, at a valuation of nearly $2 billion, before its stock began to fall following launch failures and development setbacks.
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Astra’s filing said the reverse stock split is expected to take place on or before Oct. 2, after the board of directors approves the plan on Jul. 6. The company previously outlined a reverse split as part of its plan to avoid delisting from the Nasdaq exchange.
A reverse split does not affect a company’s fundamentals as it does not dilute the stock or change the company’s valuation, but it would raise the stock price by combining stocks. A reverse split can be seen as a sign that a company is in distress and is trying to “artificially” raise its share price, or it can be seen as a way for a viable company with a beaten up share to put its business on a public exchange. continue. . Functionally, a reverse split, often done as a 1 for 10, would mean that a $3 share would become $30 per share, for example.