In addition to looking at Nasdaq’s grace period, Astra also mentioned a possessive reverse stock split.
Rocket launch startup Astra Space (NASDAQ: ASTR) has drawn up a plan to avoid a Nasdaq delisting. The stock trading platform gave the small rocket builder a deadline to break above the $1 share price level or face delisting. This came after Astra’s share remained below $1 for 30 consecutive trading days, violating Nasdaq’s listing rules. At press time, Astra is trading at $0.42, having gained 2.38% in an after-hours trading session. As the April 4 deadline approaches and Astra remains below the $1 required to continue listing on the Nasdaq, the company has moved to submit a plan earlier in the month.
Astra takes steps to avoid delisting from Nasdaq
As Astra fights to stay on the Nasdaq, the spacecraft engine maker and rocket launch startup is seeking a 180-day extension to the deadline. The company wants the trading platform to consider extending the time limit for its shares to go above $1. If Nasdaq approves the request, Astra will have until October 1 to increase its shares to the required level or at least 10 consecutive business days. Astra CFO, Axel Martínez wrote on the plan for an extended relationship with Nasdaq:
“Based on our discussions with Nasdaq representatives, we expect to hear back from Nasdaq on the status of our application around April 5, 2023, and we are not aware of any reason why our application would not be approved.”
In addition to looking at Nasdaq’s grace period, Astra also mentioned a possessive reverse stock split. The rocket maker is considering a reverse stock split to meet listing standards. Companies often resort to reverse stock splits to increase the share price by merging shares. It is often perceived as a survival route for organizations that want to intentionally increase their share prices. Reverse splits are sometimes seen as a way for companies with collapsed shares to continue trading on public exchanges.
Martínez added that Astra is interested in maintaining its commercial status on the stock market. He also said that he would continue to monitor its listing status. Meanwhile, the rocket maker has been taking a steady hit. The record shows a loss of almost 91% in the last twelve months, which was maintained as the year began. The company has lost more than 3% since 2023 and is down 8.70% in the last three months. While trading below Nasdaq’s standard requirement of more than $1 per share, Astra shares have plunged 28.21% over the past month. It is also down 2.48% in the last five days.
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
