Astra Space founders propose buyout at fraction of 2021 valuation (updated)

Astra Space

09/11/2023 15:04

(Updates shares in paragraph 3, adds background on mission
failures in paragraph 4, analyst comment in paragraph 6)
    By Akash Sriram
       Nov 9 (Reuters) - Astra Space  ASTR.O  founders Chris
Kemp and Adam London proposed to acquire the small rocket maker
once valued at more than $2 billion for $27.8 million, according
to a regulatory filing on Thursday.
    The offer price of $1.50 per share represents a premium of
about 103%, based on the stock's closing price on Wednesday.
    The company's shares, which surged about 80% on Thursday,
have fallen 99.6% since Astra went public in 2021 after a few
mission failures and delays in test flights in an industry
dominated by Elon Musk's SpaceX.
    Only two of Astra's five launches since going public have
been successful, one of which was for the U.S. Space Force and
the other was a rideshare mission for on-orbit servicing company
Spaceflight, where all payloads were deployed successfully.
    Delays, high costs to develop, test and deploy rockets as
well as a tight access to capital have shrunk valuations of
space companies, including Satellogic and Virgin Galactic, that
were once valued at billions of dollars.
    "Since Astra's multi-billion dollar valuation a couple years
ago, the space and growth market has essentially collapsed and
Astra has experienced a series of launch failures, loan
defaults, and other struggles," said Justus Parmar, founder and
CEO at venture capital firm Fortuna Investments.
    Astra, which went public with a blank-check firm at a $2.1
billion valuation, laid off a quarter of its workforce in August
and diverted focus from its rocket launch program, once a core
part of its business to satellite propulsion systems.
    The company was looking to selling a 51% stake in its
in-space propulsion business, among other strategic sale
options, Bloomberg News reported in October.

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Astra Space stock nosedives    https://tmsnrt.rs/3sAHxBn
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 (Reporting by Akash Sriram in Bengaluru; Editing by Shinjini
Ganguli)
 ((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti;
+91-74116-87774;))