Astra Requests NASDAQ Extension, Considers Reverse Stock Split To Avoid Delisting

Written By: Zac Aubert

Published: Thu, Mar 16, 2023 8:32 PM

Latest Update: Thu, Mar 16, 2023 8:57 PM

Astra has submitted an application to NASDAQ for an additional 180-day period to comply with the minimum bid price requirement.

On March 13, 2023, Astra submitted an application to NASDAQ for an additional 180-day period (through October 1, 2023, the “Extended Compliance Period”) to comply with the minimum bid price requirement. According to Astra, the company has been in discussions with representatives of NASDAQ and expects to hear back from them regarding the status of their application on or around April 5, 2023 and are not aware of any reason why their application would not be approved.

On October 6, 2022, Astra received a letter from NASDAQ stating that Astra was no longer in compliance with the NASDAQ Listing Rules as the closing bid price of Astra shares was below $1.00 for 30 consecutive business days. As per NASDAQ guidelines, Astra was provided an initial 180-day period (the “Initial Compliance Period”) through April 4, 2023 to regain compliance and could be eligible for additional time to meet the minimum bid price requirement.

Astra shares need to close at a minimum of $1.00 for a minimum of ten consecutive business days during the extended compliance period to confirm their compliance with the NASDAQ Listing Rules.

"We understand the road ahead of us to deliver on our commitments to our stockholders and our customers. After delivering over 20 satellites across two successful commercial orbital launches, and being humbled by two commercial launch failures, we have never been more focused or determined to deliver a reliable launch system for our customers. Additionally, after securing contracts for over 200 Astra Spacecraft Engines, we believe we are well-positioned to support our mission of Improving Life on Earth from Space" - Axel Martinez, Chief Financial Officer

Reverse Stock Split

Astra's is considering the possibility of conducting a reverse stock split to ensure they can comply with the NASDAQ listing rules. This type of split does not impact a company's fundamentals, as it does not alter its valuation or dilute its stock. However, it does increase the stock price by consolidating shares.

A reverse split can be perceived as a sign of financial trouble, with a company attempting to artificially elevate its stock price. Alternatively, it may be seen as a means for a viable company with a struggling stock to remain listed on a public exchange. If implemented, a reverse split, often at a ratio of 1-for-10, would convert a $3 stock into a $30 share.

Astra is actively monitoring their listing status and intends to preserve their NASDAQ listing. They stated that they "will continue to work diligently to meet all of NASDAQ's requirements and remain in compliance with their rules".

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