Astra asks for more time from Nasdaq before its stock is delisted
The rocket startup Astra has now asked Nasdaq to give it an extra six months beyond the early April deadline to get its stock price above $1 in order to avoid getting delisted from the stock market.
With its share price at $0.42 upon closing Thursday, Astra Chief Financial Officer Axel Martinez wrote in a blog post that the space company formally requested on Monday another six-month window to raise the share price above $1 for 10 consecutive business days as required to stave off a delisting.
It appears the company might be considering a reverse-stock split, whereby stocks are combined with the total number reduced, thus artificially raising the stock price. Nasdaq will consider this tactic an acceptable solution, though it is also considered a last-ditch approach.
Right now Astra is no longer an operational rocket company, having discontinued its Rocket-3 rocket. It says it is developing a new rocket, dubbed Rocket-4, but whether it can get this operational before it runs out of money or gets delisted remains unknown.
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The rocket startup Astra has now asked Nasdaq to give it an extra six months beyond the early April deadline to get its stock price above $1 in order to avoid getting delisted from the stock market.
With its share price at $0.42 upon closing Thursday, Astra Chief Financial Officer Axel Martinez wrote in a blog post that the space company formally requested on Monday another six-month window to raise the share price above $1 for 10 consecutive business days as required to stave off a delisting.
It appears the company might be considering a reverse-stock split, whereby stocks are combined with the total number reduced, thus artificially raising the stock price. Nasdaq will consider this tactic an acceptable solution, though it is also considered a last-ditch approach.
Right now Astra is no longer an operational rocket company, having discontinued its Rocket-3 rocket. It says it is developing a new rocket, dubbed Rocket-4, but whether it can get this operational before it runs out of money or gets delisted remains unknown.
Readers!
Please consider supporting my work here at Behind the Black. Your support allows me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Only now does it appear that Washington might finally recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
Vultures are circling
I would want to see the Q4 2022 numbers first, if I worked for NASDAQ.
They are waiting until Mar30, which is the very last day they can release them w/o penalty.
So they could theoretically reverse split all the way down until there was only one share outstanding and as long as that share was worth more than $1, it would be acceptable to NASDAQ? Talk about a loophole you could drive a truck through!
I knew it could be done, but had never really looked into it.
Usually it has to be approved by shareholders/board of directors.
So if they were going to try it, my guess around the time of the March 30 Q3 updates, they may ask for it.
I also learned it they are not limited to a 1-2 merge. It can be 1-5, or 1-10.
Typically, the company changes names at the same time, according (the very fallible) Wikipedia. I assume to try to disassociate the stock value from a name with a bad record.
The deflation of the new launcher industry bubble is underway. Hopefully it isn’t an explosive burst.