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In a recent development, Astra Space, Inc. (NASDAQ:ASTR), a company specializing in transportation services, has secured an additional $500,000 in financing. The transaction, which closed on Thursday, July 5, 2024, involves the sale of a 12.0% Senior Secured Convertible Note due 2025 to Chenel Capital Partners LLC.
The financing is part of a series of transactions under a Securities Purchase Agreement first dated August 4, 2023, and subsequently amended several times, with the latest amendment on May 31, 2024. The net proceeds from this financing, after estimated offering expenses, are approximately $490,000.
Astra Space may issue additional notes under the agreement, but not exceeding an aggregate original principal amount of $11,432,621.77, along with Common Stock Purchase Warrants, subject to certain conditions including the consent of the majority holders of the existing notes and warrants.
The convertible note will mature on November 15, 2025, unless extended, and is convertible into Astra Space's Class A common stock. The company will pay Chenel Capital, along with other note holders, a Minimum Return Maturity Amount on the maturity date, which includes a percentage of the outstanding principal amount plus accrued interest. This amount ranges from 150% to 175% of the outstanding principal, depending on the timing of any prepayment or redemption event.
The issuance of the convertible note and the underlying shares has not been registered under the Securities Act of 1933, as amended, and was offered in a transaction exempt from registration, relying on Section 4(a)(2) and Rule 506(b) of Regulation D. The underlying shares are subject to a registration statement that Astra Space is required to file with the SEC by August 1, 2024.
This financing is connected to Astra Space's previous announcements and financings, as detailed in a series of Current Reports on Form 8-K filed with the SEC. The terms of the financing and the company's obligations are detailed in the exhibits attached to the SEC filing.
This report is based on statements from a press release and does not constitute an offer to sell any security or a solicitation of an offer to buy any security. The information provided is for general informational purposes only and should not be considered as investment advice.
In other recent news, Astra Space, Inc., a space launch service provider, has announced a merger agreement with Apogee (NASDAQ:APOG) Parent Inc. and its subsidiary Apogee Merger Sub Inc. The merger will result in the delisting of Astra's Class A common stock from the Nasdaq.
This move followed Astra's successful resolution of a Nasdaq compliance issue by filing its overdue quarterly report. However, the company continues to face other compliance challenges, including the Minimum Bid Price Requirement and the Minimum Stockholders' Equity Requirement, and is expected to submit a plan by July 2024 to address these issues.
In more recent developments, Astra is set to be acquired by an entity, referred to as the Parent, established by its own executives for $0.50 per share. The Parent was formed by Astra's co-founder, CEO, and chairman Chris Kemp, and co-founder, CTO, and director Dr. Adam London.
The acquisition has been unanimously endorsed by a special committee of Astra's board and is expected to be finalized in the second quarter of 2024, pending standard closing conditions. This recent development marks a significant shift in the company's trajectory.
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