View from the upper stage of the LV0009 rocket in the course of the company’s live broadcast on March 15, 2022.
Astra / NASASpace flight
A manufacturer of spacecraft engines and a constructor of small rockets Astra on Thursday unveiled a plan to avoid delisting its shares from the Nasdaq.
The approaching deadline imposed by the stock exchange on April 4 – and Astra shares still below the $1 per share mark it must surpass to stay listed – the corporate filed its plan earlier this month looking for a 180-day extension, he said on Thursday.
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If the appeal is successful, Astra would allow until October 1 for its shares to trade above $1 for a minimum of 10 consecutive business days.
“Based on our discussions with Nasdaq officials, we expect a response from Nasdaq regarding the status of our application around April 5, 2023,” Axel Martinez wrote in a blog post.
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In its plan, Astra also noted the opportunity of a reverse stock split to restore compliance with Nasdaq stock exchange standards. A reverse split doesn’t affect the basics of the corporate because it doesn’t dilute the stock and doesn’t change the valuation of the corporate, but would raise the stock price by combining the stocks.
A reverse split may be seen as an indication that an organization is in difficulty and is trying to “artificially” raise the value of its stock, or it will possibly be seen as a way for a viable company with beaten shares to proceed trading within the stock market. Functionally, an inverse split, often done as 1 for 10, would mean, for instance, that a $3 stock would develop into $30 a share.
“Astra continues to actively monitor our listing status and intends to retain our Nasdaq listing,” Martinez wrote.
The corporate is anticipated to report fourth-quarter results after the market closes on March 30.
— Scott Schnipper of CNBC contributed to this report.