ALAMEDA, Calif. - Astra Space, Inc. (NASDAQ: ASTR), a provider of space launch services and electric propulsion systems, is slated to be acquired by an entity formed by its own executives, the company announced today. The deal, valued at $0.50 per share in cash, falls below Astra's recent closing stock price of $0.86 as of Monday.
The acquiring entity, referred to as the Parent, was established by Astra's co-founder, CEO, and chairman Chris Kemp, alongside co-founder, CTO, and director Dr. Adam London. The Parent will be backed by long-term investors of Astra and its predecessor, including Kemp and London themselves.
A special committee of Astra's board, consisting of independent directors and advised by financial and legal experts, has unanimously endorsed the transaction after considering the company's liquidity and other factors, deeming it favorable for Astra and its shareholders, excluding Kemp, London, and their affiliates.
The board approved the deal, with Kemp, London, and Scott Stanford abstaining from voting. Stanford's SherpaVentures Fund II, LP will contribute its Astra holdings to the Parent in exchange for equity and warrants in the new entity.
The acquisition is anticipated to be finalized in the second quarter of 2024, pending standard closing conditions. Astra has already secured written consent from a sufficient number of shareholders, negating the need for further stockholder approval.
Astra, known for its cost-efficient orbital launch services and the Astra Spacecraft Engine, aims to enhance life on Earth through space technology. The company's mission is to foster a healthier and more connected planet.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The transaction will be subject to legal and regulatory approvals, and further details will be provided in an information statement on Schedule 14C and a Schedule 13E-3 Transaction Statement, which will be filed with the SEC and made available to Astra's stockholders.
The forward-looking statements in the press release are subject to risks and uncertainties, and actual results may differ materially. This article is based on a press release statement.
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