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Astra defaults on debt agreement, warns it may not be able to raise needed cash

The company’s LV0010 rocket stands on the launchpad at Florida’s Cape Canaveral ahead of the NASA TROPICS-1 mission.


Struggling space company Astra disclosed in a securities filing late Friday that it defaulted on a recent debt agreement and may not be able to raise needed cash as funds dwindle.

Astra twice last month failed to meet minimum cash reserve requirements associated with a $12.5 million note issuance to New Jersey investment group High Trail Capital.

The debt raise first required that Astra have “at least $15.0 million of cash and cash equivalents” on hand. That liquidity requirement was adjusted after Astra failed to prove compliance a first time, to require “at least $10.5 million of unrestricted, unencumbered cash and cash equivalents.”

Having fallen out of compliance a second time, Astra now owes $8 million on the aggregate principal investment.

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While the company is “in continued discussions with a number of other investors,” it warned it “can provide no assurance that it will be able to consummate any additional transaction in a timely manner, or at all.”

Shares of Astra were little changed in after hours trading from their close of about 92 cents a share. The company performed a 1-for-15 reverse stock split in September to avoid a Nasdaq delisting, which temporarily brought Astra stock above $1 a share.

The company cut 25% of its workforce in early August to shift focus from its rocket development to its spacecraft engine production. It’s expected to report third-quarter results after market close on Nov. 13.

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