Astra CEO Chris Kemp speaks contained in the company’s headquarters during its Spacetech Day, May 12, 2022.
Brady Kenniston / Astra
Spacecraft engine manufacturer and small rocket builder Astra plans to conduct a reverse stock split at a 1 to fifteen ratio, the corporate disclosed in a securities filing Monday.
Astra also seeks to boost as much as $65 million through an “on the market” offering of common stock, the filing said.
Shares of Astra were little modified in after-hours trading from their close at 40 cents a share. The corporate went public in July 2021 via a SPAC deal, at a near $2 billion valuation, before the stock began to tumble after launch failures and development setbacks.
Enroll here to receive weekly editions of CNBC’s Investing in Space newsletter.
Astra’s filing said the reverse stock split is predicted to happen on or before October 2, after its board approved the plan July 6. The corporate previously outlined a reverse split as a part of its plan to avoid delisting by the Nasdaq exchange.
A reverse split doesn’t affect the basics of an organization, because it will not be 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 will be seen as an indication an organization is in distress and is attempting to “artificially” boost its stock price, or it may well 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 change into $30 a share.