Manufacturers of spacecraft engines and small rocket builders astra on Thursday outlined a plan to avoid having its shares delisted from the Nasdaq.
With a stock-market-imposed April 4 deadline fast approaching — and Astra’s stock is still below the $1-per-share level it must surpass to stay public — the company succumbed Launched a plan earlier this month that aims for a 180-day extension, said Thursday.
If successful, the appeal would give Astra until Oct. 1 to bring its shares above $1 for at least 10 consecutive business days.
“Based on our discussions with Nasdaq officials, we expect to receive feedback from Nasdaq on the status of our application on or about April 5, 2023 and we are not aware of any reason why our application should not be approved,” said Astra CFO Axel Martinez wrote in a blog post.
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In its plan, Astra also hinted at the possibility of a reverse stock split to bring it back in line with Nasdaq listing standards. A reverse split doesn’t affect a company’s fundamentals because it doesn’t dilute the stock or change the company’s valuation, but it would increase the stock price by merging shares.
A reverse split can be seen as a sign that a company is in distress and is trying to “artificially” inflate its share price, or it can be seen as an opportunity for a viable company with troubled stocks to start operating at a public exchange to continue . Functionally, a reverse split, often done as 1:10, would mean, say, a $3 share becomes $30 a 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 close on March 30.
— CNBC’s Scott Schnipper contributed to this report.
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