The corporate’s LV0010 rocket stands on the launchpad at Florida’s Cape Canaveral ahead of the NASA TROPICS-1 mission.
Struggling space company Astra disclosed in a securities filing late Friday that it defaulted on a recent debt agreement and will not give you the chance to boost needed money as funds dwindle.
Astra twice last month failed to fulfill minimum money reserve requirements related to a $12.5 million note issuance to Recent Jersey investment group High Trail Capital.
The debt raise first required that Astra have “no less than $15.0 million of money and money equivalents” readily available. That liquidity requirement was adjusted after Astra didn’t prove compliance a primary time, to require “no less than $10.5 million of unrestricted, unencumbered money and money equivalents.”
Having fallen out of compliance a second time, Astra now owes $8 million on the mixture principal investment.
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While the corporate is “in continued discussions with a variety of other investors,” it warned it “can provide no assurance that it should give you the chance to consummate any additional transaction in a timely manner, or in any respect.”
Shares of Astra were little modified in after hours trading from their close of about 92 cents a share. The corporate performed a 1-for-15 reverse stock split in September to avoid a Nasdaq delisting, which temporarily brought Astra stock above $1 a share.
The corporate cut 25% of its workforce in early August to shift focus from its rocket development to its spacecraft engine production. It’s expected to report third-quarter results after market close on Nov. 13.