Astra CEO Chris Kemp speaks at the corporate’s headquarters during Spacetech Day, May 12, 2022.
Brady Kenniston/Astra
A manufacturer of spacecraft engines and a constructor of small rockets Astra plans to conduct a 1-to-15 stock split, the corporate disclosed in securities sawing Monday.
Astra can be looking for to raise up to $65 million through an “available in the market” common stock offering, as stated within the filing.
Astra shares modified little in after-hours trading after closing at 40 cents a share. The corporate went public in July 2021 under a SPAC deal, valued at nearly $2 billion, before shares began to plummet after launch and development failures.
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In Astra’s filing, the reverse stock split is predicted to happen on or before October 2, after the board approves the plan on July 6. The corporate previously presented a reverse split as a part of a plan to avoid a Nasdaq delisting.
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 might 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.