Astra, a struggling space company, disclosed late Friday in a filing with the Securities and Exchange Commission that it had defaulted on its recent debt agreement. It may also not be able raise cash needed.
Astra failed to meet the minimum cash requirements twice in December, relating to a note of $12.5 million issued to High Trail Capital.
The company said it "cannot provide any assurances that it will be in a position to complete any additional transaction on time or at all."
Space company struggling to survive
Disclosure in a
Late Friday, the company announced that it had defaulted on an agreement to pay a debt and was likely not able raise cash needed as funds were dwindling.
Astra failed to meet the minimum cash requirements twice in the last month for a note of $12.5 million issued to High Trail Capital, an investment group.
Astra was required to have at least $15 million in cash and cash-equivalents on hand before the debt raise could be approved. After Astra failed the first time to demonstrate compliance, this liquidity requirement was changed to "at least $10,5 million in unrestricted and unencumbered unencumbered unencumbered unencumbered unencumbered unencumbered unencumbrated cash and cash-equivalents".
Astra owes 8 million dollars on its principal investment after falling out of compliance for the second time.
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The company has "continued discussions" with other investors, but warned that "it cannot provide any assurances as to whether it will be able consummate an additional transaction on a timely basis or at all."
Astra shares were not much changed from the close price of 92 cents per share. The company
Perform a reverse stock split of 1 for 15
In September, to avoid Nasdaq's delisting of Astra, the stock temporarily rose above $1 per share.
Cut 25% of the workforce
In early August, the company shifted its focus from rocket development to spacecraft engine manufacturing. The company is expected to announce its third-quarter earnings after the market closes on November 13.