Astra’s founders slash their offer price to buy the company
The two founders of the startup Astra have now slashed their offer price from $1.50 to $0.50 per share to buy the company and take it private.
Kemp and London cited several reasons for cutting the share price. They included continued cash burn by the company since they tendered the original offer and higher “non-operating expenses” as the company used multiple third-party advisers to assess options. They also said the special committee, as well as customers and investors, sought a plan that ensured a sufficient cash balance to support company operations once the deal closed.
It appears that they are willing to let the company go into bankrupty rather than pay their original offer. The new offer of $0.50 per share however remains significantly below the present trading price of about $1.76.
The two founders of the startup Astra have now slashed their offer price from $1.50 to $0.50 per share to buy the company and take it private.
Kemp and London cited several reasons for cutting the share price. They included continued cash burn by the company since they tendered the original offer and higher “non-operating expenses” as the company used multiple third-party advisers to assess options. They also said the special committee, as well as customers and investors, sought a plan that ensured a sufficient cash balance to support company operations once the deal closed.
It appears that they are willing to let the company go into bankrupty rather than pay their original offer. The new offer of $0.50 per share however remains significantly below the present trading price of about $1.76.