Space Impulse Brief:
- Chris Kemp and Dr. Adam London, co-founders of Astra Space, have proposed a plan to privatize the launch vehicle and spacecraft propulsion company for an estimated total of US $30 million.
- Kemp and London hold all Class B stock in Astra, giving them 66% voting power.
- A special committee made up of the majority of the company’s independent directors will review the CEO and CTO’s offer to determine the best course of action for the company’s unaffiliated shareholders.
PRESS RELEASE — November 9, 2023 — Chris Kemp (Chief Executive Officer) and Dr. Adam London (Chief Technology Officer), co-founders of Astra Space, have proposed a plan to privatize the launch vehicle and spacecraft propulsion company for an estimated total of US $30 million. According to a document submitted to the U.S. Securities and Exchange Commission on November 9, the offer, not yet legally binding, includes a price of US $1.50 per share, which is over twice the closing stock price of US $0.74 on November 8, bringing the company’s valuation to nearly US $30 million.
Kemp and London hold all Class B stock in Astra, giving them 66% voting power. A special committee made up of the majority of the company’s independent directors will review the CEO and CTO’s offer to determine the best course of action for the company’s unaffiliated shareholders.
The co-founders wrote a letter to this committee in response to its request for an offer. They argued that the company’s business prospects and strategic objectives would be best realized as a private entity. They also noted that privatizing the company with a substantial premium included for existing shareholders would benefit all parties involved, including shareholders, the company, its employees, and its customers.
Kemp and London anticipate raising between US $60–65 million. This would cover buying outstanding shares, bridge financing, and transaction costs during the deal’s closing phase. This plan depends on the successful completion of an ongoing funding round that was announced last month and expected to raise between US $15 to US $25 million.
Astra recently has been experiencing a significant drop in cash reserves since their mission failure in June 2022, causing a breach in the loan terms it received in August, leading to increased interest payments. On November 6, the company said it acquired US $13.4 million in interim funds from two investors, part of the planned financing totalling up to US $25 million, including the purchasing of the previous loan and a new US $3.05 million bridge loan due on November 17.
SOURCE: United Stated Securities and Exchange Commssion
Featured image: Chris Kemp and Dr. Adam London. Credit: Astra
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