Astra Stock Could be Delisted Over Share Price
Smallsat launcher Astra Space could be delisted after Nasdaq sent Astra a deficiency notice that its closing bid price has been below $1 for 30 consecutive business days.
According to SEC filings, Astra has 180 calendar days, or until April 4, 2023, to regain compliance with the minimum bid price requirement. If Astra’s share price is at least $1 for a minimum of 10 consecutive business days, it will be in compliance.
Nasdaq could delist the stock if the price does not go up. Astra also said it could enter a 180-day compliance period or appeal a delist decision.
“There can be no assurance that Astra will regain compliance with the Minimum Bid Price Requirement or that it will otherwise remain in compliance with the other listing requirements for Nasdaq,” the company said in SEC filings.
Astra was one of the first space companies to go public in the wave of special purpose acquisition (SPAC) mergers. The company went public in July 2021, before it had successfully reached orbit. Since then, Astra successfully reached orbit in a mission for the U.S. Space Force in November 2021 and then again in a March 2022 mission. But the rocket failed in a NASA Venture Class Launch Services 2 mission in February and more recently in its first NASA TROPICS mission in June 2022.
After the June failure, the company made the decision to retire its Rocket 3.3 iteration and move to the next version of its launch system. Astra said this means it will not launch again in 2022 and may not launch in 2023, depending on test flights.
“We’re working with all of our launch service customers to remanifest and Launch System 2.0. Thus, we will not have any additional flights in 2022,” CEO Chris Kemp said. “Whether we’ll be able to commence commercial launches in 2023 will depend on the success of our test flight,” he added.
In its most recent financial results, Astra posted an adjusted net loss of $53 million in the second quarter. Engine orders are one bright spot for the company, as Astra acquired propulsion company Apollo Fusion in 2021. Astra had 103 committed orders at the end of the second quarter.