The company’s LV0010 rocket sits on the launch pad at Cape Canaveral, Florida, ahead of NASA’s TROPICS-1 mission.
Astra twice last month failed to meet minimum cash reserve requirements associated with a $12.5 million note offering to New Jersey investment group High Trail Capital.
The debt increase first required Astra to have “at least $15.0 million in cash and cash equivalents.” This liquidity requirement was adjusted after Astra failed to demonstrate compliance the first time, to require “at least $10.5 million in unrestricted and unencumbered cash and cash equivalents.”
Having been non-compliant a second time, Astra now owes $8 million on the total principal investment.
Although the company is “in ongoing discussions with a number of other investors,” it cautioned that it “can provide no assurance that it will be able to complete an additional transaction in a timely manner, if at all.” “.
Astra shares were little changed in after-hours trading from their close of around 92 cents per share. The company carried out a 1 for 15 reverse stock split in September to avoid a delisting from Nasdaq, which temporarily lifted Astra stock above $1 per share.
The company removed 25% of its workforce at the beginning of August to concentrate the development of its rockets on the production of engines for spacecraft. The company is expected to report its third-quarter results after the market closes on November 13.