Astra, a spacecraft engine manufacturer and small rocket builder, plans to conduct a reverse stock split at a 1:15 ratio. The company also aims to raise USD 65 million through an at-the-market offering of common stock.

The reverse stock split is expected to occur on or before October 2, following board approval on July 6. The reverse split is part of Astra's strategy to avoid delisting by the Nasdaq exchange.

Proceeds from the stock sale will go toward working capital and general corporate purposes, including the development of its next-generation launch vehicle, Rocket 4, and continued production of its Astra Spacecraft Engine electric thrusters.

Analyst QuickTake: Astra risked delisting from Nasdaq as its stock price dropped below USD 1 and was given 180 days from October 2022 to raise the share price above USD 1 for ten consecutive business days. Astra obtained a 180-day extension on April 10. A reverse stock split combines shares to increase the stock price without affecting the company's fundamentals or valuation. It can be perceived as a distressed company's attempt to artificially boost the stock price or as a means for a viable company to continue operations on a public exchange.