After Astra Loses 99% of Its Value, Founders Take Rocket Company Private

Enlarge / Lift-off of Astra Rocket 3.0 Since Cape Canaveral, Florida. Star

Astra long, odd journey In THE space business East socket another turn. THE business announcement THURSDAY that he East going private has A extremely weak evaluation.

Four years There is, THE rocket business, base In Alameda, California, emerged Since stealth with grandiose plans has develop A no frills rocket that could launch frequently. "THE theme that Really makes This business stay out, which will capture THE imagination of OUR clients, OUR Investors, And OUR employees, East THE idea that each day We will produce And launch A rocket," Star co-founder Chris Kemp said during A tour of THE factory In FEBRUARY 2020.

Almost Exactly A year later, on FEBRUARY 2, 2021, Star went public via A special aim acquisition business (Or PSPC). "THE transaction reflects A implicit pro forma business value For Star of approximately $2.1 billion," THE business declared has THE time. For A time, THE the society action even negotiated above This evaluation.

But SO, rockets begin fail. Only two of THE Seven launches of THE the society "Rocket 3" vehicle were successful. In August 2022, THE business announcement A pivot has THE bigger Rocket 4 vehicle. He foreseen has to start conduct test launches In 2023, but that did not arrive. Therefore, THE the society action price fell.

Last November Kemp And THE the society co-founder, Adam London, propose has buy Star actions has $1.50, approximately double their price. THE the society advice of directors did not accept THE agreement. SO, In late FEBRUARY, Kemp And London clearly cut their offer has take THE business private, warning of "imminent bankruptcy" if THE business doesn't accept their new proposal. They Free $0.50 A share, GOOD below THE trade value of approximately $0.80 A share

On THURSDAY, Star said that This agreement was be consumed.

“Astra Space, Inc. announcement Today that he has between In A definitive merger agreement in accordance has which THE acquire entity has agreed, subject has customary closing terms, has acquire all actions of Star common action not Already possesses by he For $0.50 by share In species," THE business declared. THE acquire entity consists of Kemp, London, And other long term investors.

Or Star go Since here East someone guess. Rocket 4 East likely month Or years Since THE launch buffer. He faces rigid competition not just Since established little launch players such as Rocket Laboratory And Firefly but Since new participants as GOOD, including ABL Space And Feed Space. In addition, all of these little launch companies to have has been undermine In price by SpaceX Carrier missions, which launch dozens of satellites has A time on THE Falcon 9 reminder.

In addition, Astra spatialship engine business—acquired previously Since Apollo Fusion – can Or can not be profitable NOW, but there are questions about It is long term viability as well.

"I don't do it mistake management For gripping THE opportunity has increase hundreds of millions of dollars by Spacing, but A pre-income launch business without A proven rocket was probably Never A GOOD match For THE public markets," said Case Taylor, investor And author of THE Case Farm newsletter.

Taylor added that he hope that Star spatialship engines find A path has prosper In THE new Star, as THE space industry values their performance. "I hope has see that diamond survive And prosper," he said.