To raise cash Astra will sell off some of its stock
Short of cash, Astra officials have now decided to sell about $65 million worth of the company’s existing stock.
In a filing with the U.S. Securities and Exchange Commission published after the markets closed, Astra said it had signed a sales agreement with Roth Capital Partners under which it will sell up to $65 million of its stock in an “at-the-market” offering, where shares are sold at the going market rate.
Net proceeds from the stock sale, the company said, would go towards working capital and general corporate purposes. That includes development of its next-generation launch vehicle, Rocket 4, as well as continued production of its Astra Spacecraft Engine electric thrusters.
The stock sale comes as the company was running low on cash. Astra reported having $62.7 million in cash as of the end of the first quarter, with a net loss of $44.9 million. The company reported no revenue in the first quarter.
The $65 million figure is based on the present value of the stock. If the market price drops, a good possibility, the company will raise less.
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Short of cash, Astra officials have now decided to sell about $65 million worth of the company’s existing stock.
In a filing with the U.S. Securities and Exchange Commission published after the markets closed, Astra said it had signed a sales agreement with Roth Capital Partners under which it will sell up to $65 million of its stock in an “at-the-market” offering, where shares are sold at the going market rate.
Net proceeds from the stock sale, the company said, would go towards working capital and general corporate purposes. That includes development of its next-generation launch vehicle, Rocket 4, as well as continued production of its Astra Spacecraft Engine electric thrusters.
The stock sale comes as the company was running low on cash. Astra reported having $62.7 million in cash as of the end of the first quarter, with a net loss of $44.9 million. The company reported no revenue in the first quarter.
The $65 million figure is based on the present value of the stock. If the market price drops, a good possibility, the company will raise less.
Readers!
Every February I run a fund-raising drive during my birthday month. This year I celebrate my 72nd birthday, and hope and plan to continue writing and posting on Behind the Black for as long as I am able.
I hope my readers will support this effort. As I did in my November fund-raising drive, I am offering autographed copies of my books for large donations. Donate $250 and you can have a choice of the hardback of either Genesis: the Story of Apollo 8 or Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space. Donate $200 and you can get an autographed paperback copy of either.
Please consider supporting my work here at Behind the Black. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID 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. Every one of those 2020 conclusions has turned out right.
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.
Doesn’t sound good. IIRC, Astra doesn’t have a product to generate cash flow, just promises of “real soon, now”
Now we know where the money is. But impressive what Astra has done there. I hope Astra’s business concept works.
https://www.youtube.com/watch?v=pSaa5ZNMGYA