Astra plans to avoid Nasdaq delisting

A view from aboard the upper stage of the LV0009 rocket during the company’s live broadcast on March 15, 2022.

Astra / NASAS space flight

Spacecraft engine manufacturer and small rocket manufacturer Astra on Thursday said it plans not to delist its shares from the Nasdaq.

As the stock market’s April 4 deadline approaches — and Astra shares are still below the $1-a-share level to remain listed — the company earlier this month requested a 180-day extension to the plan., reported Thursday.

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If successful, the appeal would give Astra until Oct. 1 to get its shares above $1 for at least 10 consecutive business days.

“Based on our discussions with Nasdaq representatives, we expect to hear back from Nasdaq on or about April 5, 2023 regarding the status of our application and are not aware of any reason why our application was not approved,” Astra CFO Axel Martinez wrote in a blog post.

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In its plan, Astra also outlined the possibility of a reverse stock split to return to Nasdaq listing standards. A reverse split does not affect the company’s fundamentals because it does not affect the stock and does not change the company’s price, but it increases the stock price by combining the shares.

A reverse split can be seen as a sign that a company is under stress and trying to “artificially” boost its stock price, or it can be seen as a way for a viable company whose shares have been liquidated to continue operating on a public exchange. . Functionally, a reverse split, often done as a 1-for-10, represents a $3 share, for example, $30 per share.

“Astra continues to actively monitor our listing status and intends to maintain our Nasdaq listing,” Martinez wrote.

The company is expected to report fourth-quarter results after the market closes on March 30.

— CNBC’s Scott Schnipper contributed to this report.

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