Astra founders reduce offer to take company privateJeff FoustFebruary 27, 2024WASHINGTON — The founders of satellite propulsion and launch vehicle company Astra have sharply cut their offer to take the company private, warning of “imminent bankruptcy” if the company doesn’t accept their new proposal.
https://spacenews.com/astra-founders-reduce-offer-to-take-company-private/QuoteAstra founders reduce offer to take company privateJeff FoustFebruary 27, 2024WASHINGTON — The founders of satellite propulsion and launch vehicle company Astra have sharply cut their offer to take the company private, warning of “imminent bankruptcy” if the company doesn’t accept their new proposal.
Is there not a conflict of interest here? If the executive officers in charge of operations also happen to be the parties interested in purchasing the company at current market value? What’s to stop them from driving the value down against the interests of shareholders?Seems wrong somehow. Especially if they took investors’ money at many multiples of the current valuation. Meaning they are now offering to buy out the other shareholders using a small fraction of the money that originally came from those very same shareholders.Dodgy as hell in my view.
What’s to stop them from driving the value down against the interests of shareholders?
Quote from: M.E.T. on 02/28/2024 10:40 amWhat’s to stop them from driving the value down against the interests of shareholders?Shareholder lawsuits, and being left 'holding the bag' of a company they have just paid out (personal, rather than company) money to purchase after driving it into the ground.
Anybody have a guess on how much time/"runway" is left for Astra at this point?
Quote from: Asteroza on 02/28/2024 08:55 pmAnybody have a guess on how much time/"runway" is left for Astra at this point?Yeah. Somebody said "imminent bankruptcy". So what happens differently if they do buy the company back? Seems to me like it's bankruptcy anyway. Maybe they don't want people to take on their offer...
Quote from: brussell on 02/28/2024 10:29 pmQuote from: Asteroza on 02/28/2024 08:55 pmAnybody have a guess on how much time/"runway" is left for Astra at this point?Yeah. Somebody said "imminent bankruptcy". So what happens differently if they do buy the company back? Seems to me like it's bankruptcy anyway. Maybe they don't want people to take on their offer...The article says that "at least $20 million of cash" from the take-private deal would go towards the company's coffers, to keep the lights on a little longer. That said, I see no evidence that they're on the verge of success, and $20M is all that sits between them and becoming cash-flow positive.
An interesting question is did the venture capital got their money back before things went wrong?
Maybe they can sell the CNC machines etc to others. presumably they should have some hard assets with the venture and spac money. An interesting question is did the venture capital got their money back before things went wrong?
Astra Space, Inc. to be taken private:
ASTRA SPACE, INC. TO BE TAKEN PRIVATEMARCH 7, 2024Unanimously Recommended by Special Committee of the Astra Board of DirectorsAlameda, California — March 7, 2024 — Astra Space, Inc. (“Astra” or the “Company”) (Nasdaq: ASTR) announced today that it has entered into a definitive merger agreement pursuant to which the acquiring entity (the “Parent”) has agreed, subject to customary closing conditions, to acquire all shares of Astra common stock not already owned by it for $0.50 per share in cash. On March 6, 2024, the closing price of Astra’s Class A common stock was $0.86 per share.The Parent was formed by Chris Kemp, Astra’s co-founder, chief executive officer and chairman, and Dr. Adam London, Astra’s co-founder, chief technology officer and director. The Parent is expected to be owned, at the closing of the transaction, by a number of long-term investors of the Company and its predecessor, including Mr. Kemp and Dr. London.A special committee (the “Special Committee”) of the Board of Directors of the Company (the “Board”), comprised solely of independent and disinterested directors, advised by its own independent financial and legal advisors, and taking into account Astra’s current liquidity situation, among other factors, determined that the proposed transaction is in the best interests of Astra and the holders of Astra’s common stock other than Chris Kemp, Dr. Adam London and their respective affiliates and unanimously recommended that the Board approve the transaction. Acting upon the recommendation of the Special Committee, the Board approved the transaction, with Chris Kemp, Dr. Adam London and Scott Stanford abstaining from the vote. SherpaVentures Fund II, LP, an affiliate of Scott Stanford, has agreed to contribute its Astra Class A common stock, Senior Secured Convertible Notes due 2025 and Common Stock Warrants to Parent in exchange for equity and warrants of Parent in connection with the transaction.The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions. The transaction has been approved by the written consent of the holders of the requisite number of shares of Astra’s common stock, such that no additional stockholder approval is required.
Astra to report Q4 2022 earnings on March 30, 2023 at 1.30pm PT / 4.30pm ET: bit.ly/3ydYtNtLive webcast will be available at: https://investor.astra.com/investor-relations/ $ASTR
Last one of these I assume?https://twitter.com/astra/status/1632861687232745472QuoteAstra to report Q4 2022 earnings on March 30, 2023 at 1.30pm PT / 4.30pm ET: bit.ly/3ydYtNtLive webcast will be available at: https://investor.astra.com/investor-relations/ $ASTR
How can they legally take the shares for 40% less than market value.
Quote from: TrevorMonty on 03/08/2024 07:43 amHow can they legally take the shares for 40% less than market value.'Market value' is what shareholders are willing to sell for. Shareholders were willing to sell for the value Astra's management offered to pay, so that is de-facto their market value.