Astra outlines its plan to avoid Nasdaq delisting, including possible reverse stock split

Spacecraft motor shaper and tiny rocket builder Astra connected Thursday outlined a program to debar having its banal delisted from the Nasdaq.

With an exchange-imposed deadline of April 4 drafting adjacent – and Astra's banal inactive beneath the $1 a stock level it needs to transcend to stay connected the speech – the institution filed a program earlier this month, seeking an 180-day extension, it said Thursday.

If successful, the entreaty would springiness Astra until Oct. 1 to get its shares supra $1 for astatine slightest 10 consecutive concern days.

"Based connected our discussions with representatives of Nasdaq, we expect to perceive backmost from Nasdaq regarding the presumption of our exertion connected oregon astir April 5, 2023, and we are not alert of immoderate crushed wherefore our exertion would not beryllium approved," Astra CFO Axel Martinez wrote successful a blog post.

In its plan, Astra besides noted the anticipation of conducting a reverse banal divided to get backmost into compliance with Nasdaq's listing standards. A reverse divided does not impact the fundamentals of a company, arsenic it is not dilutive to the banal and does not alteration the company's valuation, but it would assistance the banal terms by combining shares.

A reverse divided tin beryllium seen arsenic a motion a institution is successful distress and is trying to "artificially" boost its banal price, oregon it tin beryllium viewed arsenic a mode for a viable institution with a beaten up banal to proceed operations connected a nationalist exchange. Functionally, a reverse split, often done arsenic a 1-for-10, would mean a $3 stock, for example, would go $30 a share.

"Astra continues to actively show our listing presumption and intends to sphere our Nasdaq listing," Martinez wrote.

The institution is expected to study fourth-quarter results aft marketplace adjacent connected Mar. 30.

— CNBC's Scott Schnipper contributed to this report.