Astra defaults on financial obligation arrangement, might not have the ability to raise required money

Struggling area business Astra divulged in a securities filing late Friday that it defaulted on a current financial obligation arrangement and might not have the ability to raise required money as funds decrease.

Astra two times last month stopped working to satisfy minimum money reserve requirements connected with a $125 million note issuance to New Jersey financial investment group High TrailCapital

The financial obligation raise initially needed that Astra have “at least $15.0 million of cash and cash equivalents” on hand. That liquidity requirement was changed after Astra stopped working to show compliance a very first time, to need “at least $10.5 million of unrestricted, unencumbered cash and cash equivalents.”

Having fallen out of compliance a 2nd time, Astra now owes $8 million on the aggregate primary financial investment.

While the business is “in continued discussions with a number of other investors,” it cautioned it “can provide no assurance that it will be able to consummate any additional transaction in a timely manner, or at all.”

Shares of Astra were bit altered in after hours trading from their close of about 92 cents a share. The business carried out a 1-for-15 reverse stock split in September to prevent a Nasdaq delisting, which briefly brought Astra stock above $1 a share.

The business cut 25% of its labor force in early August to move focus from its rocket advancement to its spacecraft engine production. It’s anticipated to report third-quarter outcomes after market close onNov 13.