Author Topic: Astra Space  (Read 418379 times)

Offline XRZ.YZ

  • Full Member
  • **
  • Posts: 225
  • Charlotte,NC
  • Liked: 161
  • Likes Given: 65
Re: Astra Space
« Reply #1040 on: 02/27/2024 10:23 pm »
https://twitter.com/SpaceInvestor_/status/1762516101336826261
Astra CEO wants to buy the company back at 0.5$ per share.

But the market price is at 1.74$ today
XQCR LLYZ GYZH HZSZ

Online FutureSpaceTourist

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 48912
  • UK
    • Plan 28
  • Liked: 82711
  • Likes Given: 37219
Re: Astra Space
« Reply #1041 on: 02/28/2024 06:37 am »
https://spacenews.com/astra-founders-reduce-offer-to-take-company-private/

Quote
Astra founders reduce offer to take company private
Jeff Foust
February 27, 2024

WASHINGTON — 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.

Offline TrevorMonty

Re: Astra Space
« Reply #1042 on: 02/28/2024 08:31 am »


https://spacenews.com/astra-founders-reduce-offer-to-take-company-private/

Quote
Astra founders reduce offer to take company private
Jeff Foust
February 27, 2024

WASHINGTON — 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.

Translation.
"Accept our offer else its business as usual ie running company into ground".

Offline M.E.T.

  • Senior Member
  • *****
  • Posts: 2333
  • Liked: 2930
  • Likes Given: 510
Re: Astra Space
« Reply #1043 on: 02/28/2024 10:40 am »
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.
« Last Edit: 02/28/2024 10:41 am by M.E.T. »

Offline ulm_atms

  • Rocket Junky
  • Full Member
  • ****
  • Posts: 932
  • To boldly go where no government has gone before.
  • Liked: 1566
  • Likes Given: 799
Re: Astra Space
« Reply #1044 on: 02/28/2024 11:30 am »
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.
That's what the shareholders need to ask the SEC.

But I agree, none of this sounds on the up and up.

Online edzieba

  • Virtual Realist
  • Senior Member
  • *****
  • Posts: 6308
  • United Kingdom
  • Liked: 9629
  • Likes Given: 41
Re: Astra Space
« Reply #1045 on: 02/28/2024 11:32 am »
What’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.

Offline M.E.T.

  • Senior Member
  • *****
  • Posts: 2333
  • Liked: 2930
  • Likes Given: 510
Re: Astra Space
« Reply #1046 on: 02/28/2024 01:11 pm »
What’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.

“Personal money” earned from running a “before-profit”, $2.1B company funded almost exclusively by the shareholders they are now offering to buy out at cents on the dollar.

Online mn

  • Full Member
  • ****
  • Posts: 1060
  • United States
  • Liked: 906
  • Likes Given: 340
Re: Astra Space
« Reply #1047 on: 02/28/2024 03:31 pm »
IANAL but

If the shareholders believe it is worth more they can make a counter offer. If the shareholders believe different management decisions would lead to a different outcome they are welcome to try.

You would have to show that the CEO intentionally made decisions that would cause the company to lose value (that new management cannot recover because it is too late), I think that is hard to prove. Obviously it looks bad so the SEC would take a look, but I highly doubt there is any wrongdoing involved, they were just doomed by reality.

(What the CEO told investors to convince them that it is worth money in the first place, that could be grounds for legal action perhaps, if he sold them a load of ...)

Offline Asteroza

  • Senior Member
  • *****
  • Posts: 2876
  • Liked: 1099
  • Likes Given: 33
Re: Astra Space
« Reply #1048 on: 02/28/2024 08:55 pm »
Anybody have a guess on how much time/"runway" is left for Astra at this point?

Offline brussell

  • Member
  • Posts: 98
  • la
  • Liked: 74
  • Likes Given: 35
Re: Astra Space
« Reply #1049 on: 02/28/2024 10:29 pm »
Anybody 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...


Online trimeta

  • Full Member
  • ****
  • Posts: 1722
  • Kansas City, MO
  • Liked: 2189
  • Likes Given: 57
Re: Astra Space
« Reply #1050 on: 02/29/2024 03:51 am »
Anybody 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.

Offline brussell

  • Member
  • Posts: 98
  • la
  • Liked: 74
  • Likes Given: 35
Re: Astra Space
« Reply #1051 on: 03/04/2024 02:32 pm »
Anybody 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.

I know, but those $20M are still very little runway, like you point out as well.

EDIT: The market is responding to the news.
« Last Edit: 03/04/2024 02:32 pm by brussell »

Offline XRZ.YZ

  • Full Member
  • **
  • Posts: 225
  • Charlotte,NC
  • Liked: 161
  • Likes Given: 65
Re: Astra Space
« Reply #1052 on: 03/04/2024 06:07 pm »
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?
XQCR LLYZ GYZH HZSZ

Offline c4fusion

  • Full Member
  • *
  • Posts: 197
  • Sleeper Service
  • Liked: 121
  • Likes Given: 175
Re: Astra Space
« Reply #1053 on: 03/04/2024 10:36 pm »
An interesting question is did the venture capital got their money back before things went wrong?

Generally the rule of thumb is no, it’s high risk, high rewards.

Offline TrevorMonty

Re: Astra Space
« Reply #1054 on: 03/04/2024 11:41 pm »
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?
Lot of VC investors would've recovered their investment along with nice profit when Astra went public.

Online FutureSpaceTourist

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 48912
  • UK
    • Plan 28
  • Liked: 82711
  • Likes Given: 37219
Re: Astra Space
« Reply #1055 on: 03/07/2024 07:15 pm »
https://twitter.com/astra/status/1765833314144043195

Quote
Astra Space, Inc. to be taken private:

https://astra.com/news/astra-space-private/

Quote
ASTRA SPACE, INC. TO BE TAKEN PRIVATE
MARCH 7, 2024

Unanimously Recommended by Special Committee of the Astra Board of Directors

Alameda, 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.
« Last Edit: 03/07/2024 07:15 pm by FutureSpaceTourist »

Online FutureSpaceTourist

  • Global Moderator
  • Senior Member
  • *****
  • Posts: 48912
  • UK
    • Plan 28
  • Liked: 82711
  • Likes Given: 37219
Re: Astra Space
« Reply #1056 on: 03/08/2024 06:47 am »
Last one of these I assume?

https://twitter.com/astra/status/1632861687232745472

Quote
Astra to report Q4 2022 earnings on March 30, 2023 at 1.30pm PT / 4.30pm ET: bit.ly/3ydYtNt

Live webcast will be available at: https://investor.astra.com/investor-relations/ $ASTR
« Last Edit: 03/08/2024 06:49 am by FutureSpaceTourist »

Offline TrevorMonty

Re: Astra Space
« Reply #1057 on: 03/08/2024 07:43 am »
Last one of these I assume?

https://twitter.com/astra/status/1632861687232745472

Quote
Astra to report Q4 2022 earnings on March 30, 2023 at 1.30pm PT / 4.30pm ET: bit.ly/3ydYtNt

Live webcast will be available at: https://investor.astra.com/investor-relations/ $ASTR
Before they screw over their shareholders for one last time. How can they legally take the shares for 40% less than market value.
« Last Edit: 03/08/2024 07:44 am by TrevorMonty »

Online edzieba

  • Virtual Realist
  • Senior Member
  • *****
  • Posts: 6308
  • United Kingdom
  • Liked: 9629
  • Likes Given: 41
Re: Astra Space
« Reply #1058 on: 03/08/2024 11:28 am »
How 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.

Offline TrevorMonty

Re: Astra Space
« Reply #1059 on: 03/08/2024 02:06 pm »
How 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.

They were changing hands in $0.80s up until this announcement. See trading history.
« Last Edit: 03/08/2024 02:07 pm by TrevorMonty »

Tags:
 

Advertisement NovaTech
Advertisement Northrop Grumman
Advertisement
Advertisement Margaritaville Beach Resort South Padre Island
Advertisement Brady Kenniston
Advertisement NextSpaceflight
Advertisement Nathan Barker Photography
1