So, its just Apollo Fusion with extra steps But yeah, will be curious how they handle stock and valuation if they are suddenly spinning this off. This was a debate at SpaceX about if / when Starlink should become its own company, how do you split valuation.
Quote from: Foximus on 07/07/2023 05:37 pmSo, its just Apollo Fusion with extra steps But yeah, will be curious how they handle stock and valuation if they are suddenly spinning this off. This was a debate at SpaceX about if / when Starlink should become its own company, how do you split valuation.While Starlink is money maker long term it owes launch side of business a lot money for all those launches.
Key Points Spacecraft engine manufacturer and small rocket builder Astra plans to conduct a reverse stock split at a 1 to 15 ratio. Astra also seeks to raise up to $65 million through an “at the market” offering of common stock. The company previously outlined a reverse split as part of its plan to avoid delisting by the Nasdaq exchange.
Effective July 5, 2023 and in conjunction with the Company entering the Sales Agreement, the Company terminated the Common Stock Purchase Agreement between the Company and B. Riley Principal Capital II, LLC (“B. Riley”) dated August 2, 2022. As of July 5, 2023, B. Riley no longer holds Registrable Securities (as such term is defined in the Registration Rights Agreement between the Company and B. Riley, dated August 2, 2022 (the “Registration Rights Agreement”)). Accordingly, the Company’s obligations under the Registration Rights Agreement were also terminated as of July 5, 2023.
One interesting detail from the SEC filing which isn't being discussed as greatly:QuoteEffective July 5, 2023 and in conjunction with the Company entering the Sales Agreement, the Company terminated the Common Stock Purchase Agreement between the Company and B. Riley Principal Capital II, LLC (“B. Riley”) dated August 2, 2022. As of July 5, 2023, B. Riley no longer holds Registrable Securities (as such term is defined in the Registration Rights Agreement between the Company and B. Riley, dated August 2, 2022 (the “Registration Rights Agreement”)). Accordingly, the Company’s obligations under the Registration Rights Agreement were also terminated as of July 5, 2023.More details about this Common Stock Purchase Agreement (originally valued at "up to" $100M) can be found in the original press release discussing it (or in this original SEC filing). To my knowledge this deal was never executed and B. Riley never purchased any Class A shares under this agreement. Why Astra cancelled this deal at the same time they announced their intention to raise up to $65M through an at-the-market offering, I don't know enough about finance to speculate.
Astra says it has laid off 25% of its staff and reallocated other personnel from launch to spacecraft propulsion. The company says that will delay work on its Rocket 4 launch vehicle. Astra also projects remaining cash to be below earlier forecasts.
ASTRA OPTIMIZES WORKFORCE TO SUPPORT SUSTAINABLE LONG-TERM BUSINESS PLANAug 4, 2023ALAMEDA, Calif.--(BUSINESS WIRE)--Aug. 4, 2023-- Astra Space, Inc. (“Astra”) (NASDAQ: ASTR) today announced a strategic reallocation of its workforce from its Launch Services organization to its Astra Spacecraft Engines™ business to support its growing customer base and order backlog of its spacecraft engines.Astra last announced 278 cumulative committed orders of the Astra Spacecraft Engine™ through March 30, 2023, representing approximately $77 million of contract value. A substantial majority of these orders are expected to be delivered through the end of 2024.In support of the Astra Spacecraft Engine™ business, Astra has reallocated approximately 50 engineering and manufacturing personnel from Launch Services to Space Products. This reallocation includes a combination of permanent reassignments and temporary assignments to support customer programs and increasing production and test capacity through the end of the year.“We are intensely focused on delivering on our commitments to our customers, which includes ensuring we have sufficient resources and an adequate financial runway to execute on our near-term opportunities,” said Chris Kemp, Founder, Chairman and CEO.In addition to this reallocation, Astra has also reduced its overall workforce by approximately 25% since the beginning of the quarter, including a reduction of approximately 70 employees that was announced on August 4, 2023. The affected employees primarily supported the Company’s launch, SG&A, and shared services functions.“I am grateful for the sacrifices that the employees impacted by this decision have made, and we are deeply committed to treating all impacted employees with the utmost care and respect during this transition,” continued Kemp.Astra’s Launch Services organization remains focused on completing milestones for several launch customer contracts while continuing development of Rocket 4 and Launch System 2.0. The reduction and reallocation of Launch Services resources is expected to delay the timing of the Company’s test launches and paid commercial launches.As discussed on our previous earnings call, Astra continues to make significant reductions to its operating expenses. Cumulative reductions in workforce are expected to result in over $4m of quarterly cost savings beginning in Q4 2023, which when combined with ongoing reductions in Capex and Opex, are expected to result in substantial reductions to cash burn over the next few quarters.The Company remains focused on thoughtfully pursuing opportunities to raise additional capital. Given the strength of our Astra Spacecraft Engine™ business, the Company has engaged PJT Partners, a global, advisory-focused investment bank, to act as the Company’s financial advisor in connection with future financing activities and to explore potential strategic investments in the Astra Spacecraft Engine™ business to strengthen Astra’s balance sheet.Business UpdateAs part of this announcement, Astra is also providing the following preliminary estimates of certain unaudited financial results for the three months ended June 30, 2023, in order to support our continuing discussions with lenders and other potential financing sources. The data presented below has been prepared by and is the responsibility of the Company management. It is preliminary and unaudited, based on our estimates, and subject to further internal review by its management and compilation of actual results. The Company’s independent registered public accounting firm has not audited, reviewed, compiled, or performed any procedures with respect to the preliminary financial data presented below. Accordingly, the Company’s independent registered public accounting firm does not express an opinion or any other form of assurance with respect to this preliminary financial data. Ranges have been provided, rather than specific amounts, for the preliminary data because financial closing procedures for the three months ended June 30, 2023 are not yet complete.For the three months ended June 30, 2023, we expect:Revenues to be between $0.5 million to $1.0 million,GAAP net loss to be between $13.0 million and $15.0 million,adjusted EBITDA loss* to be between $32.1 million and $34.1 million,basic shares outstanding to be between 271 million and 273 million shares,capital expenditures to be between $2.9 million and $3.9 million, andcash, cash equivalents and marketable securities to be between $26.0 million and $26.5 million.The preliminary estimates provided for adjusted EBITDA loss, basic shares outstanding, and capital expenditures are in line with the original guidance provided at the Q1 2023 earnings call on May 15, 2023.The preliminary estimate of cash, cash equivalents and marketable securities guidance is lower than the range initially provided at the Q1 2023 earnings call on May 15, 2023 primarily due to delays in collecting on government receivables of approximately $2.9 million and a delay in the Company’s receipt of cash proceeds from the employee retention tax credit of approximately $2.1 million. Had these two items been collected in Q2 2023, we believe, based on our current views, that Astra’s cash, cash equivalents and marketable securities would have been within the guidance provided on that earnings call.Adjusted EBITDA loss is a non-GAAP financial measure. Please see our current report on Form 8-K filed August 4, 2023, with the SEC for more information on our use of Adjusted EBITDA loss and for a reconciliation of our preliminary estimated range of Adjusted EBITDA loss for the three months ended June 30, 2023 to its most comparable GAAP measure.Litigation UpdateThe Company also announced a development in its securities litigation. On August 2, 2023, the Company received an order granting its motion to dismiss in the action before the U.S. federal district court for the Northern District of California, captioned: In Re Astra Space Inc. f/k/a Holicity Inc. Securities Litigation. The plaintiffs’ complaint alleged that the Company and several of its current and former officers and directors violated provisions of the Securities Exchange Act of 1934, as amended, with respect to certain statements concerning the Company’s projected launch cadence and payload capacity goals. The complaint sought unspecified damages on behalf of a purported class of purchasers of the Company’s securities between February 2, 2021 and December 29, 2021. The plaintiffs in this action have a period of 21 days to file an amended complaint.
I don't want to be grim, but it seems that the end is near 😔 I hope they get acquired by Firefly.
This is a fascinating Rocket Lab discussion we’re having in the Astra Space thread and forum.
Revenue in 1st half of 2023: 0Cashburn in 1st half of 2023: 78 M$Cash and equivalents left on 30 June: 26 M$Astra needs to raise lots of money very soon to avoid bankruptcy.https://investor.astra.com/static-files/a075940e-832b-4528-9547-c0f77fd5da34
Quote from: PM3 on 08/15/2023 06:19 amRevenue in 1st half of 2023: 0Cashburn in 1st half of 2023: 78 M$Cash and equivalents left on 30 June: 26 M$Astra needs to raise lots of money very soon to avoid bankruptcy.https://investor.astra.com/static-files/a075940e-832b-4528-9547-c0f77fd5da34In fairness, that $26M doesn't include the $12.5M senior secured note from August 4th, or their upcoming $65M "at the market" offering (granted, that second one is more theoretical money than money they can access). So they at least know they need to raise lots of money, and have been implementing plans to do so.Edit: Net proceeds from the secured note were only $10.8 million, I should have read the press release more carefully.
