Astra Space, the launch vehicle and spacecraft propulsion company, has raised $2.7 million in a subsequent financing round from existing investors.
Astra Space, the launch vehicle and spacecraft propulsion company, has raised $2.7 million in a subsequent financing round from existing investors, according to a filing with the U.S. Securities and Exchange Commission.
The funding came from two current investors, JMCM Holdings LLC and Sherpa Ventures Fund II, along with Astra’s co-founders, Chris Kemp and Adam London. The financing involved modifications to existing loans, a new $3 million loan, and the sale of stock warrants, with net proceeds of $2.7 million after expenses.
This move comes as Astra Space continues to work on securing a more substantial long-term funding deal that could potentially lead to the company going private. The recent funding aims to support ongoing operations as negotiations for a more significant deal unfold. Astra Space has been navigating financial challenges, prompting strategic financing initiatives to ensure its sustainability.
In November, the company secured $13.4 million in initial financing from JMCM Holdings LLC and Sherpa Ventures Fund II, coupled with a non-binding term sheet announced in October seeking to raise between $15 million and $25 million. A bridge loan provided in the initial financing was due on November 17, and an extension was granted until November 21, allowing additional time to finalize a more extensive funding agreement.
Astra Space, in a filing with the SEC, did not provide specific updates on the progress of the long-term financing deal. The company has been actively pursuing options to address its financial situation, with efforts dating back to October’s announcement of the non-binding term sheet.
On November 9, Astra Space announced a proposal by its co-founders, Chris Kemp and Adam London, to take the company private at $1.50 per share. The proposal was made public without concrete details on financing arrangements.
Astra Space stated it was evaluating the offer, which would require Kemp and London to raise an estimated $60 million to $65 million in capital. This capital would not only cover the acquisition of outstanding shares but also address expenses and provide bridge financing to the company.
The offer by Kemp and London presented a significant premium on the value of Astra’s shares at the time, offering a roughly 100% premium. However, since the announcement, the company’s shares have experienced an increase, closing at $1.57 on November 24.
As Astra Space continues to navigate financial complexities, the recent interim financing provides a lifeline while the company seeks a more comprehensive funding solution. The dynamics of the situation, including potential privatization and ongoing negotiations, will be closely monitored within the space industry as Astra Space plays a crucial role in the competitive launch services sector.