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.
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.