Rocket launch startup Astra Space (NASDAQ: ASTR) has drawn a plan to avoid a delisting from the Nasdaq. The stock trading platform gave the small rocket builder a deadline to exceed a share price level of $1 or face removal. This came after Astra’s share remained below $1 for 30 consecutive business days, violating Nasdaq listing rules. At press time, Astra trades at $0.42, having gained 2.38% in an after-hours trading session. As the April 4th deadline approaches and Astra remains below the required $1 to continue trading on the Nasdaq, the company has moved to file a plan earlier in the month.
Astra Makes Moves to Avoid Nasdaq Delisting
As Astra fights for a stay on the Nasdaq, the spacecraft engine manufacturer and rocket launch startup is seeking a 180-day extension to the deadline. The company wants the trading platform to consider lengthening the time limit for its shares to rise above $1. If Nasdaq approves the request, Astra will have till October 1 to get its shares increased to the required level or at least 10 consecutive business days. Astra chief financial office Axel Martinez wrote about the plan for an extended relationship with Nasdaq:
“Based on our discussions with representatives of Nasdaq, we expect to hear back from Nasdaq regarding the status of our application on or around April 5, 2023, and we are not aware of any reason why our application would not be approved.”
In addition to seeking the grace period from Nasdaq, Astra also mentioned a possessive reverse stock split. The rocket maker is considering a reverse stock split to fall back in compliance with the listing standards. Companies often resort to reverse stock splits to increase the stock price by merging shares. It is often perceived as a survival route for organizations that want to intentionally boost their stock prices. Sometimes, reverse splits are seen as a way for companies with crashed stock to maintain operating on public exchanges
Martinez added that Astra is keen on maintaining its trading status with the stock exchange. He also said that it would continue to keep an eagle eye on its listing status. Meanwhile, the rocket manufacturer has been steadily taking a hit. The record shows a loss of almost 91% in the last twelve months, which continued as the year started. The company has shed over 3% since 2023 and dipped 8.70% in the last three months. While trading below the standard Nasdaq requirement of over $1 per share, Astra stock plummeted 28.21% over the past month. It is also down 2.48% in the last five days.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.