- Parabolic Arc
- November 29, 2023
Nasdaq Threatens to Delist Astra Space Unless Stock Price Increases
With its stock battered below $1 due to repeated launch failures, Astra Space suffered another blow on Thursday when it received a deficiency notice from Nasdaq saying the company would be delisted until less it can increase its share price.
“Astra has 180 calendar days, or until April 4, 2023, to regain compliance with the minimum bid price requirement set forth in Rule 5450(a)(1) (the “Minimum Bid Price Requirement”). NASDAQ’s notice stated that if, at any time before April 4, 2023, the per share closing bid price of Astra’s Class A common stock is at least $1.00 for a minimum of ten consecutive business days, NASDAQ’s staff will provide Astra written notice that it complies with the Minimum Bid Price Requirement,” the company said in a document filed with the Securities and Exchange Commission (SEC).
Nasdaq sent the deficiency notice after Astra’s stock price closed below $1 for 30 consecutive business days. The share price closed at $0.59 in after-hours trading on Friday.
Astra Space began trading on Nasdaq on July 1, 2021 at an opening share price of $12.30. The stock peaked the following day at $16.95. Astra Space went public after merging with a special purpose acquisition company named Holicity.
“If Astra does not regain compliance with the Minimum Bid Price Requirement by April 4, 2023, Astra may be eligible for an additional 180 calendar day compliance period. To qualify, Astra would need to, among other things, meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for NASDAQ, with the exception of the Minimum Bid Price Requirement, and provide written notice to NASDAQ that it intends to cure the deficiency during the second compliance period,” Astra’s filing said.
Astra’s Rocket 3 family of small satellite launchers has a record of two successes and five failures. Another booster was destroyed on the launch pad after a fire broke out prior to launch.
Astra announced earlier this year that it was abandoning its latest launcher, Rocket 3.3, after a launch failure in June that destroyed two NASA Time-Resolved Observations of Precipitation structure and storm Intensity with a Constellation of Smallsats (TROPICS) spacecraft. The company said it would move forward with launches of the larger Rocket 4.0 booster and suspended further missions in 2022.
NASA canceled two Astra launches that would have orbited four TROPICS spacecraft. The space agency is looking for another launch provider for the mission, which will provide valuable data on tropical cyclones.
Astra recently appointed Axel Martinez as its new chief financial officer, replacing Kelyn Brannon. Martinez’s appointment will be effective in November.
“Axel is a talented and experienced finance executive that will be an invaluable addition to our management team,” said Chris Kemp, Founder, Chairman, and CEO of Astra. “We expect his deep knowledge of the technology industry, experience with scaling high-growth companies, and participation in capital markets will be a huge asset to Astra as we enter our next phase.”