Astra secures temporary investment funding to keep it afloat
Astra announced yesterday that it has secured temporary funding from private sources to cover its shortfall of cash and allow it to secure additional funds to keep it alive. From the second link:
In a statement issued after the close of trading, Astra said that JMCM Holdings LLC and Sherpa Venture Funds II, LLP, which it described as affiliates of two early investors in Astra, agreed to provide $13.4 million in “initial financing” as part of a non-binding term sheet Astra announced Oct. 23 that sought to raise $15 million to $25 million.
As part of the agreement, the investors will purchase the $8 million loan that Astra had from an unnamed institutional investor from August. Astra had defaulted on the terms of the loan agreement last week when its cash reserves dropped below $10.5 million, triggering a $3.1 million payment at a higher interest rate. The investors will also provide a $3.05 million bridge loan due Nov. 17, and purchase warrants for Astra stock.
The company is not out of the woods quite yet. It needs to obtain new investment capital by November 17th, when that bridge loan comes due.
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Astra announced yesterday that it has secured temporary funding from private sources to cover its shortfall of cash and allow it to secure additional funds to keep it alive. From the second link:
In a statement issued after the close of trading, Astra said that JMCM Holdings LLC and Sherpa Venture Funds II, LLP, which it described as affiliates of two early investors in Astra, agreed to provide $13.4 million in “initial financing” as part of a non-binding term sheet Astra announced Oct. 23 that sought to raise $15 million to $25 million.
As part of the agreement, the investors will purchase the $8 million loan that Astra had from an unnamed institutional investor from August. Astra had defaulted on the terms of the loan agreement last week when its cash reserves dropped below $10.5 million, triggering a $3.1 million payment at a higher interest rate. The investors will also provide a $3.05 million bridge loan due Nov. 17, and purchase warrants for Astra stock.
The company is not out of the woods quite yet. It needs to obtain new investment capital by November 17th, when that bridge loan comes due.
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.
“described as affiliates of two early investors in Astra” translation, they are desperately trying not to lose their shirts in a dumpster fire