(MENAFN) Spacecraft engine manufacturer and small rocket builder, Astra, has outlined a plan to avoid having its stock delisted from the Nasdaq. With an exchange-imposed deadline of April 4 approaching and Astra's stock still below the required $1 a share level to remain on the exchange, the company filed a plan earlier this month seeking an 180-day extension. If successful, the appeal would give Astra until October 1 to get its shares above $1 for at least 10 consecutive business days.
Astra CFO Axel Martinez expressed confidence in the company's appeal, stating that they expect to hear back from Nasdaq regarding the status of their application on or around April 5, 2023, and are not aware of any reason why their application would not be approved.
In its plan, Astra also noted the possibility of conducting a reverse stock split to comply with Nasdaq's listing standards. A reverse split would not affect the fundamentals of the company and would not change the company's valuation, but it would lift the stock price by combining shares.
While a reverse split can be seen as a sign of a company in distress trying to artificially boost its stock price, it can also be viewed as a way for a viable company with a low stock price to continue operations on a public exchange. Astra's proposed reverse split, often done as a 1-for-10, would mean a $3 stock would become $30 a share.
Astra's plan to avoid Nasdaq delisting is a crucial step in maintaining its public position and continuing operations. The outcome of the appeal and the possibility of a reverse split will be closely watched by investors and industry analysts alike.
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