Astra outlines plan to keep away from Nasdaq inventory delisting
A view from onboard the higher stage of rocket LV0009 through the firm’s livestream on March 15, 2022.
Astra / NASASpaceflight
Spacecraft engine producer and small rocket builder Astra on Thursday outlined a plan to keep away from having its inventory delisted from the Nasdaq.
With an exchange-imposed deadline of April 4 drawing close to – and Astra’s inventory nonetheless beneath the $1 a share degree it must exceed to stay on the change – the corporate filed a plan earlier this month, in search of an 180-day extension, it stated Thursday.
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If profitable, the enchantment would give Astra till Oct. 1 to get its shares above $1 for no less than 10 consecutive enterprise days.
“Primarily based on our discussions with representatives of Nasdaq, we anticipate to listen to again from Nasdaq relating to the standing of our software on or round April 5, 2023, and we aren’t conscious of any purpose why our software wouldn’t be accepted,” Astra CFO Axel Martinez wrote in a weblog publish.
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In its plan, Astra additionally famous the potential for conducting a reverse inventory cut up to get again into compliance with Nasdaq’s itemizing requirements. A reverse cut up doesn’t have an effect on the basics of an organization, as it’s not dilutive to the inventory and doesn’t change the corporate’s valuation, however it might elevate the inventory value by combining shares.
A reverse cut up could be seen as an indication an organization is in misery and is attempting to “artificially” enhance its inventory value, or it may be considered as a approach for a viable firm with a overwhelmed up inventory to proceed operations on a public change. Functionally, a reverse cut up, typically carried out as a 1-for-10, would imply a $3 inventory, for instance, would turn into $30 a share.
“Astra continues to actively monitor our itemizing standing and intends to protect our Nasdaq itemizing,” Martinez wrote.
The corporate is predicted to report fourth-quarter outcomes after market shut on Mar. 30.
— CNBC’s Scott Schnipper contributed to this report.