Space travel and launch services provider Astra is creating a wholly-owned subsidiary, Astra Spacecraft Engines, Inc., to enhance flexibility in hiring and financing.

The restructuring is driven by two motives: Operations and financing. It aims to address different regulations governing launch companies and spacecraft component businesses.

Export control rules, such as the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR), impose varying restrictions on selling products and hiring non-US personnel. ITAR makes it challenging for Astra to hire non-US talent, leading to the company turning away qualified candidates for its spacecraft engine business.

The restructuring also unlocks new financing options, allowing Astra to secure loans against the subsidiary for its launch business. Astra's cash reserves are decreasing, necessitating careful evaluation of financing opportunities to extend the company's financial runway.