Astra $ASTR doesn't have much time left: Cash reserves fell below $10.5 million on Oct. 30, which meant the company defaulted on its August debt raise agreement, and talks have yet to raise new funding.
Astra defaults on debt agreement, warns it may not be able to raise needed cashPUBLISHED FRI, NOV 3 20236:09 PM EDTMichael Sheetz@IN/MICHAELJSHEETZ@THESHEETZTWEETZKEY POINTSStruggling space company Astra disclosed in a securities filing late Friday that it defaulted on a recent debt agreement and may not be able to raise needed cash.Astra twice last month failed to meet minimum cash reserve requirements associated with a $12.5 million note issuance to New Jersey investment group High Trail Capital.The company warned it “can provide no assurance that it will be able to consummate any additional transaction in a timely manner, or at all.”
ASTRA ANNOUNCES CLOSING OF ADDITIONAL DEBT FINANCING AND WAIVER OF PREVIOUSLY ANNOUNCED DEFAULTSNov 6, 2023Financing provided by affiliates of two early investors in AstraALAMEDA, Calif.--(BUSINESS WIRE)--Nov. 6, 2023-- Astra Space, Inc. (“Astra”)(Nasdaq: ASTR) announced today that it has closed an initial financing with JMCM Holdings LLC (“JMCM”) and Sherpa Venture Funds II, LLP (together with JMCM, the “Investors”), affiliates of two early investors in Astra, for a total investment amount of approximately $13.4 million (the “Initial Financing”) pursuant to a reaffirmation agreement and omnibus amendment agreement dated November 6, 2023 (the “Initial Financing Agreement”). This Initial Financing is connected to Astra’s announcement in a report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on October 23, 2023 of the execution of a non-binding term sheet (the “Term Sheet”). The Term Sheet contemplates a financing of at least $15.0 million, from the Investors and other potential investors, and up to $25.0 million (the “Proposed Financing”).The Initial Financing includes (1) a purchase by the Investors of the remaining $8.0 million aggregate principal amount of senior secured notes (the “Existing Notes”) and associated warrants (the “Existing Warrants”) to purchase up to 1.5 million post-reverse stock split shares of Astra’s Class A common stock, par value $0.0001 per share (the “Class A Common Stock”) issued on August 4, 2023 from the Astra’s senior secured creditor, pursuant to which Astra was in default under as of October 30, 2023, (2) a loan by the Investors to Astra and its subsidiaries in the aggregate principal amount of approximately $3.05 million evidenced by senior secured bridge notes (the “Bridge Notes”) that will come due on November 17, 2023, that will rank equally as to payment and lien priority with the Existing Notes that will be secured by the same collateral as the Existing Note and that will be guaranteed by all of the subsidiaries of Astra, and (3) a sale to the Investors of warrants (the “Warrants”) to purchase up to 5,314,201 shares of Astra’s Class A Common Stock at a purchase price of $0.125 per Warrant for an aggregate purchase price of approximately $664,275 that are immediately exercisable at an exercise price of $0.808 per share of Class A Common Stock, subject to certain adjustments and that expire on August 4, 2028.Pursuant to the Initial Financing Agreement, the Investors have agreed to waive certain existing and prospective defaults and events of default under the Existing Notes, including the events of default under the Existing Notes described in the Astra’s Form 8-K filed with the SEC on November 3, 2023, and the requirement for Astra to comply with the minimum liquidity financial covenant in the Existing Notes until November 17, 2023 to provide Astra with time to raise additional liquidity through various capital raising and cost cutting initiatives and strategic transactions (the “Strategic Plan”).Astra is in continuing discussions concerning the Proposed Financing with the Investors. The funding contemplated by the Term Sheet is conditioned upon execution of final definitive documentation among the Company and the Investors; however there can be no assurance that the Company and the Investors will be able to negotiate definitive documentation on the terms specified in the Term Sheet or to consummate the Proposed Financing at all.The Bridge Notes and the warrants have not been and will not be, and any securities issued in connection with the Proposed Financing will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any other jurisdiction. The Bridge Notes, the Warrants and any securities issued in connection with the Proposed Financing may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell any security, including the Bridge Notes, the Warrants or any securities that may be issued in the Proposed Financing, nor a solicitation for an offer to purchase any security, including the Bridge Notes, the Warrants or any securities that may be issued in the Proposed Financing, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration, qualification, or exemption under the securities laws of any such jurisdiction.About Astra Space, Inc.Astra’s mission is to improve life on Earth from space by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services, and one of the industry’s leading flight-proven electric propulsion systems for satellites, Astra Spacecraft Engine. Visit astra.com to learn more about Astra.Safe HarborThe statements made herein concerning the Initial Financing and the Proposed Financing include “forward-looking statements.” Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and can be identified by the use of, without limitation, words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “seeks,” “would,” “could” or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe any objectives, the Strategic Plan, the Proposed Financing, involvement of the Investors in the Proposed Financing, plans or goals are forward-looking. The forward-looking statements are based on the Company’s current intent, belief, expectations, estimates and projections regarding the Company, the Strategic Plan and the Proposed Financing. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to differ materially. Accordingly, readers should not rely upon forward-looking statements as a prediction of actual results and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained herein.View source version on businesswire.com: https://www.businesswire.com/news/home/20231106646305/en/Investor Contact: [email protected]Media Contact: [email protected]Source: Astra Space, Inc.
Chris Kemp, chairman and CEO, and Adam London, chief technology officer, delivered a proposal to the Astra board of directors on Wednesday to acquire all the company’s outstanding stock at $1.50 a share.
The founders anticipate raising $60 million to $65 million in capital to fund the take-private move, given the purchase price as well as transaction expenses and bridge financing.
Update: Astra $ASTR canceled its Q3 earnings call.
On November 8, 2023, Scott Stanford resigned as the Lead Independent Director of Astra Space, Inc. ("Astra" or the "Company") and also resigned as a member of the Company's Compensation Committee. Mr. Stanford's resignation followed the participation of Sherpa Ventures Fund II, LP ("Sherpa") in the Initial Financing previously disclosed in the Company's Current Report on Form 8-K, dated November 6, 2023, and filed with the Securities Exchange Commission on November 8, 2023. Mr. Stanford remains a member of the Board of Directors.Also, on November 8, 2023, the Company's Board of Directors appointed Michael Lehman to serve as the Lead Independent Director.On November 9, 2023, the Company announced its receipt from the Company's founders, Chris Kemp and Adam London, of a non-binding proposal offering to acquire all of the outstanding common stock of the Company not currently owned by Mr. Kemp and Dr. London, (the"Proposal"). Given the Proposal, the Company is canceling its earnings call for the third quarter ending September 30, 2023, which was scheduled to be held on Monday, November 13, 2023, at 4:30 p.m. eastern time.
Investors grant Astra extension on loanJeff FoustNovember 18, 2023BERLIN — Investors in launch vehicle and spacecraft propulsion company Astra Space have given the company a four-day extension on a loan to provide the company more time to line up a longer-term funding deal.
OAKLAND, CA – August 1, 2023. Chabot Space & Science Center (“Chabot”) announces the donation of an Astra Rocket 3 to the Center. The decommissioned series 3 Astra rocket, Launch Vehicle 0012, will reside in Chabot’s rotunda for visitors to see and experience upon entering the Center. This is the first rocket of its kind to be viewable outside of Astra's rocket factory in Alameda, California.Astra’s rockets are unique in their small size, and in the record-breaking speed with which they moved from concept to launch to reaching orbit— just 5 years after the company was founded. This rocket is part of their third series of vehicles designed. Rocket 3 launched multiple missions between August 2021 to June 2022 and successfully delivered 22 satellites to orbit.“Astra’s Rocket 3 is the fastest rocket to successfully reach orbit, just 5 years after Astra was founded, and we could not be more thrilled to see it in its new home at Chabot,” said Chris Kemp, Founder, Chairman and CEO of Astra. “The opportunity to display this rocket, while giving future generations access to the innovation and spirit of discovery that we feel every day at Astra, is one we value immensely.”"This is an extraordinary time for space exploration, including right here in the Bay Area, which is home to a growing number of companies and organizations at the forefront of space exploration and innovation. Chabot is excited to partner with Astra to showcase the Rocket 3 at our Center and to highlight the stories of scientists, engineers, and entrepreneurs who are driving the current renaissance in the space industry. Visitors will gain insight and inspiration into the motivations, challenges, and accomplishments of those leading space innovation and exposes our younger audiences to careers and new interests in space and STEM,” said Liz Austerman, Deputy Director of Chabot Space & Science Center.A rotating series of exhibits will be continuously added to give visitors the chance to learn about the rocket, Astra, spaceflight, manufacturing, engineering, and more. You can learn more about the rocket at chabotspace.org/astra-rocket-debut/.News Media are invited to cover the ribbon cutting ceremony celebrating the groundbreaking installation at Chabot Space & Science Center. The exclusive first look will take place on Friday, August 11 at 10am at Chabot Space & Science Center.--About Chabot Space & Science CenterChabot Space & Science Center is a non-profit institution and community resource located on 13 trail-laced acres in Redwood Regional Park in Oakland amid the largest stand of coastal redwoods in the East Bay. Chabot features a 241-seat full dome planetarium, interactive and hands-on exhibits, space artifacts, a giant screen theater, NASA Ames Visitor Center, and the only research-level telescopes regularly available to the public for weekly live viewing in the Western United States. Chabot’s mission is to inspire and educate learners of all ages about the Universe and Planet Earth.Chabot Space & Science Center is open Wed.-Sun. 10 am-5 pm with First Fridays the first Friday of every month 6-10 pm. Admission is Adults: $24 • Children 2-12 $19 (under 2 free) • Students/Seniors $19 • Memberships available.About Astra Space, Inc.Astra’s mission is to Improve Life on Earth from Space® by creating a healthier and more connected planet. Today, Astra offers one of the lowest cost-per-launch dedicated orbital launch services of any operational launch provider in the world, and one of the industry’s first flight-proven electric propulsion systems for satellites, Astra Spacecraft Engine™. Astra delivered its first commercial launch to low Earth orbit in 2021, making it the fastest company in history to reach this milestone, just five years after it was founded in 2016. Astra (NASDAQ: ASTR) was the first space launch company to be publicly traded on Nasdaq. Visit astra.com to learn more about Astra.
It looks like Astra has raised.... $8M+ cash in the sale of senior secured convertible notes...