- Spacecraft engine manufacturer and small rocket builder Astra plans to conduct a reverse stock split at a 1 to 15 ratio.
- Astra also seeks to raise up to $65 million through an "at the market" offering of common stock.
- The company previously outlined a reverse split as part of its plan to avoid delisting by the Nasdaq exchange.
Spacecraft engine manufacturer and small rocket builder Astra plans to conduct a reverse stock split at a 1 to 15 ratio, the company disclosed in a securities filing Monday.
Astra also seeks to raise up to $65 million through an "at the market" offering of common stock, the filing said.
Shares of Astra were little changed in after-hours trading from their close at 40 cents a share. The company went public in July 2021 via a SPAC deal, at a near $2 billion valuation, before the stock began to tumble after launch failures and development setbacks.
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Astra's filing said the reverse stock split is expected to take place on or before October 2, after its board approved the plan July 6. The company previously outlined a reverse split as part of its plan to avoid delisting by the Nasdaq exchange.
A reverse split does not affect the fundamentals of a company, as it is not dilutive to the stock and does not change the company's valuation, but it would lift the stock price by combining shares. A reverse split can be seen as a sign a company is in distress and is trying to "artificially" boost its stock price, or it can be viewed as a way for a viable company with a beaten up stock to continue operations on a public exchange. Functionally, a reverse split, often done as a 1 for 10, would mean a $3 stock, for example, would become $30 a share.