Shares of Astra Space surged nearly 85% after the company’s founders offered to take the company private in a $30 million deal, according to a securities filing.
The deal, proposed by CEO Adam London and Chairman Chris Kemp, valued Astra at $1.50 per share. The stock jumped 82% Friday afternoon to $1.33, nearly doubling its market value.
“We believe that Astra’s strategic objectives and business prospects will be best served as a private company,’ the executive wrote in a letter to shareholders. “Taking the company private while delivering a meaningful premium to current shareholders allows for the best interests of shareholders as well as the company, its employees and its customers to be met.”
London and Kemp plan to raise $60 million to $65 million to fund the move, adding that they are “open to certain accredited investor stockholders of the Company rolling their equity into the transaction.”
Astra initially went public through a SPAC merger at a $2.6 billion valuation in February 2021 with the promise of quickly and cheaply producing small rockets.
However, the company’s rockets reached orbit just twice and saw three launch failures after going public. The rocket business went on hiatus after a mission failure in June 2022.
In October, Astra defaulted on a debt raise as its cash reserve dropped below $10.5 million.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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