Astra conducts layoffs, raises debt and shifts focus to spacecraft engines in bid to survive

Struggling abstraction institution Astra is cutting 25% of its workforce, the institution announced connected Friday, and restructuring to absorption much connected its spacecraft motor business, which volition hold advancement connected the tiny rocket it has been developing.

Astra is cutting astir 70 employees, arsenic good arsenic reallocating astir 50 unit from its rocket improvement programme implicit to its abstraction products unit, which builds the company's spacecraft engines.

"We are intensely focused connected delivering connected our commitments to our customers, which includes ensuring we person capable resources and an capable fiscal runway to execute connected our near-term opportunities," Astra president and CEO Chris Kemp said successful a statement.

The workforce reductions are expected to effect successful $4 cardinal successful quarterly outgo savings, opening successful the 4th quarter. Astra noted that it had 278 full orders for spacecraft engines, arsenic of 4 months ago, worthy astir $77 cardinal successful contracts. It expects to present connected "a important majority" of those orders by the extremity of 2024.

In a abstracted filing Friday, Astra said it raised $10.8 cardinal successful nett proceeds from selling indebtedness to concern radical High Trail Capital.

Astra banal was small changed successful after-hours trading connected Friday from its adjacent astatine 38 cents a share.

Last twelvemonth Astra moved distant from its Rocket 3.3 conveyance earlier than expected to absorption connected the adjacent version, an upgraded strategy called Rocket 4.0, aft its last Rocket 3.3 ngo failed mid-launch. While the institution was targeting a archetypal motorboat of Rocket 4 by the extremity of this year, successful a securities filing Astra noted the prioritization of the spacecraft motor concern "will impact the timing of the Company's aboriginal trial launches."

"The Company's quality to behaviour paid commercialized launches successful 2024 and beyond volition beryllium connected the eventual timing and occurrence of the archetypal trial launches which volition successful crook beryllium connected the resources that the Company is capable to give to Launch Systems improvement successful the coming quarters," Astra warned.

The institution besides released preliminary second-quarter results. Astra expects it brought $1 cardinal oregon little successful gross during the quarter, with a nett nonaccomplishment betwixt $13 cardinal and $15 million, and a remaining magnitude of currency and securities of astir $26 million. The institution plans to study finalized second-quarter results connected Aug. 14.

Last period Astra finalized plans to behaviour a reverse banal split astatine a 1 to 15 ratio. It's besides seeking to rise up to $65 million done an "at the market" offering of communal banal done Roth Capital, and ended a anterior statement with B. Riley to merchantability up to $100 cardinal successful communal banal that the institution signed a twelvemonth ago.

In Friday's filing, Astra said it hired PJT Partners arsenic a fiscal advisor, with the institution "focused connected thoughtfully pursuing opportunities to rise further capital."