A view from onboard the upper stage of rocket LV0009 in the course of the company’s livestream on March 15, 2022.
Astra / NASASpaceflight
Spacecraft engine manufacturer and small rocket builder Astra on Thursday outlined a plan to avoid having its stock delisted from the Nasdaq.
With an exchange-imposed deadline of April 4 approaching – and Astra’s stock still below the $1 a share level it must exceed to stay on the exchange – the corporate filed a plan earlier this month, looking for an 180-day extension, it said Thursday.
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If successful, the appeal would give Astra until Oct. 1 to get its shares above $1 for no less than 10 consecutive business days.
“Based on our discussions with representatives of Nasdaq, we expect to listen to back from Nasdaq regarding the status of our application on or around April 5, 2023, and we usually are not aware of any reason why our application wouldn’t be approved,” Astra CFO Axel Martinez wrote in a blog post.
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In its plan, Astra also noted the potential for conducting a reverse stock split to get back into compliance with Nasdaq’s listing standards. A reverse split doesn’t affect the basics of an organization, because it is just not dilutive to the stock and doesn’t change the corporate’s valuation, but it surely would lift the stock price by combining shares.
A reverse split could be seen as an indication an organization is in distress and is attempting to “artificially” boost its stock price, or it might probably be viewed as a way for a viable company with a beaten up stock to proceed operations on a public exchange. Functionally, a reverse split, often done as a 1-for-10, would mean a $3 stock, for instance, would develop into $30 a share.
“Astra continues to actively monitor our listing status and intends to preserve our Nasdaq listing,” Martinez wrote.
The corporate is anticipated to report fourth-quarter results after market close on Mar. 30.
— CNBC’s Scott Schnipper contributed to this report.
