Astra outlines its plan to keep away from Nasdaq delisting, together with attainable reverse inventory break up

Spacecraft engine producer and small rocket builder Astra on Thursday outlined a plan to keep away from having its inventory delisted from the Nasdaq.

With an exchange-imposed deadline of April four drawing close to – and Astra’s inventory nonetheless beneath the $1 a share degree it must exceed to stay on the alternate – the corporate filed a plan earlier this month, in search of an 180-day extension, it mentioned Thursday.

If profitable, the attraction would give Astra till Oct. 1 to get its shares above $1 for a minimum of 10 consecutive enterprise days.

“Primarily based on our discussions with representatives of Nasdaq, we count on to listen to again from Nasdaq relating to the standing of our utility on or round April 5, 2023, and we aren’t conscious of any cause why our utility wouldn’t be authorised,” Astra CFO Axel Martinez wrote in a weblog publish.

In its plan, Astra additionally famous the opportunity of conducting a reverse inventory break up to get again into compliance with Nasdaq’s itemizing requirements. A reverse break up doesn’t have an effect on the basics of an organization, as it’s not dilutive to the inventory and doesn’t change the corporate’s valuation, however it will elevate the inventory worth by combining shares.

A reverse break up could be seen as an indication an organization is in misery and is attempting to “artificially” increase its inventory worth, or it may be seen as a approach for a viable firm with a overwhelmed up inventory to proceed operations on a public alternate. Functionally, a reverse break up, usually completed as a 1-for-10, would imply a $three inventory, for instance, would turn into $30 a share.

“Astra continues to actively monitor our itemizing standing and intends to protect our Nasdaq itemizing,” Martinez wrote.

The corporate is anticipated to report fourth-quarter outcomes after market shut on Mar. 30.

— CNBC’s Scott Schnipper contributed to this report.