Astra’s board agrees to deal to take the company private
The board of directors of the rocket startup Astra have finally agreed to a cut-right price offer from the company’s two founders to buy the company and take it private once again, rather than declare bankruptcy.
The company announced Thursday that its board had accepted an offer from its CEO, Chris Kemp, and its CTO, Adam London, to purchase the remaining Astra stock at a price of $0.50 per share. The deal is expected to close in the second quarter of 2024, at which time Astra will cease trading on the Nasdaq.
This offer was significantly less than their first offer in November, when Kemp and London offered to buy the company for $1.50 per share, suggesting the company’s value has declined significantly in the interim as its cash assets declined. This decline suggests that any recovery will be difficult and long, and could easily fail.
Freedom is wonderful in that it allows for the greatest amount of creativity, competition, and achievement, from everyone. It also carries great risk that everyone must face. Astra has now illustrated the risk. Not all creative gambles are going to succeed.
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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.
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The board of directors of the rocket startup Astra have finally agreed to a cut-right price offer from the company’s two founders to buy the company and take it private once again, rather than declare bankruptcy.
The company announced Thursday that its board had accepted an offer from its CEO, Chris Kemp, and its CTO, Adam London, to purchase the remaining Astra stock at a price of $0.50 per share. The deal is expected to close in the second quarter of 2024, at which time Astra will cease trading on the Nasdaq.
This offer was significantly less than their first offer in November, when Kemp and London offered to buy the company for $1.50 per share, suggesting the company’s value has declined significantly in the interim as its cash assets declined. This decline suggests that any recovery will be difficult and long, and could easily fail.
Freedom is wonderful in that it allows for the greatest amount of creativity, competition, and achievement, from everyone. It also carries great risk that everyone must face. Astra has now illustrated the risk. Not all creative gambles are going to succeed.
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.
Where did the nearly $500 million raised from investors actually go? The whole Astra rocket adventure shouldn’t cost that much?
We all need a laugh right about now…so…
https://twitter.com/breadfrom/status/1765838201804013897?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1765838201804013897%7Ctwgr%5E18cba31111b545edbd16d2963a504a8a3a8d55ae%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.secretprojects.co.uk%2Fthreads%2Fastra-space.33027%2Fpage-2