Struggling Space Startup Astra Eyes Going Private in $30 Million Buyout
Astra, a space company based in Alameda, California, is facing financial struggles and possible privatization. The founders of the company have proposed taking it private at a value of around $30 million, as reported in a securities filing on Thursday.
Offering a premium of 103% on the current share price, CEO Chris Kemp and Chief Technology Officer Adam London made a proposal to acquire all outstanding stock at $1.50 per share. This offer comes as Astra’s business has faced setbacks, including a recent rocket mission failure in June 2022.
The company’s financial woes have also been exacerbated a cash shortage and cutbacks in its workforce. Astra’s cash reserve fell below $10.5 million, leading to a debt default, although it managed to secure financing from investors to address the outstanding debt.
Since going public through a SPAC merger in February 2021 at a valuation of $2.6 billion, Astra’s journey has been fraught with challenges. While the company achieved successful orbital launches, it also experienced three launch failures, contributing to its current financial predicament.