Astra plans to avoid Nasdaq stock delisting

Producer of spacecraft engines and manufacturer of small rockets. Aster Thursday laid out a plan to avoid delisting its shares from the Nasdaq.

With the exchange’s April 4 deadline approaching – and Astra’s stock still below the $1-per-share level it needs to break to remain listed – the company filed a plan earlier this month seeking a 180-day extension., Thursday said it.

If successful, the appeal will give Astra until October 1 for its shares to be above $1 for at least 10 consecutive business days.

“Based on our discussions with Nasdaq representatives, we expect to hear from Nasdaq regarding the status of our application on or about April 5, 2023, and we are not aware of any reason why our application will not be approved,” Astra Chief Financial Officer. Axel Martinez wrote on his blog.

In its plan, Astra also noted the possibility of a reverse stock split to return to Nasdaq listing standards. The reverse split does not affect the company’s fundamentals because it does not have a dilutive effect on the shares and does not change the company’s valuation, but will raise the price of the shares through the consolidation of the shares.

A reverse split can be seen as a sign that a company is in trouble and is trying to “artificially” increase the price of its shares, or as a way for a viable company with a beaten stock to continue trading on a public exchange. . Functionally, a reverse split, often drawn as 1 to 10, would mean, for example, that a $3 share would become $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.

— Scott Schnipper of CNBC contributed to this report.