Astra presents plan to avoid Nasdaq delisting, including reverse stock split as an option

Astra, the spacecraft engine manufacturer and small rocket builder, is facing a looming deadline of April 4 to raise its stock price above $1 per share and avoid being delisted from the Nasdaq exchange. In a recent filing, the company has requested an 180-day extension to meet the minimum share price requirement, giving it until October 1 to achieve at least 10 consecutive business days above $1 per share. Astra CFO Axel Martinez expressed confidence that the application for the extension will be approved by the Nasdaq, with the decision expected to be made around April 5, 2023.

However, Astra also outlined a contingency plan in the event that the extension is not granted or the share price remains below the required threshold. The company noted the possibility of conducting a reverse stock split, which would increase the share price by combining shares without diluting the stock or changing the company’s valuation. A reverse split is typically viewed as a sign that a company is in distress, but can also be a strategy for a viable company with a low stock price to maintain its public exchange listing.

Martinez emphasized that Astra is closely monitoring its listing status and is committed to preserving its Nasdaq listing. The company is expected to report its fourth-quarter results after the market closes on March 30. With the deadline for compliance approaching, Astra’s future on the Nasdaq remains uncertain, but the company’s leadership remains optimistic that they will find a way to meet the exchange’s requirements and maintain their presence on the public market.