Astra Space, the launch vehicle and spacecraft propulsion company, has received a four-day extension on a loan from investors as it continues negotiations for a longer-term funding arrangement. JMCM Holdings LLC and SherpaVentures Fund II, LLP provided a bridge loan worth $3.05 million earlier this month, part of a $13.4 million interim financing deal. The bridge loan, now valued at $5.5 million, was extended to November 21, allowing Astra additional time to secure liquidity through capital raising initiatives and cost-cutting measures.
Astra, facing financial challenges, defaulted on a previous loan when its cash reserves fell below specified levels. The company is actively engaged in discussions with investors to refinance the deal, and the extension provides room for further negotiations. Founders Chris Kemp and Adam London recently proposed taking the company private at a valuation of nearly $30 million, contingent on raising $60 million to $65 million, with details of the funding source yet to be disclosed.
The extension comes after Astra canceled a scheduled quarterly earnings call on November 13 following the privatization proposal. While the company released its third-quarter financial results on November 16, reporting a net loss of $29.7 million and $256,000 in revenue, it did not provide updates on the privatization offer. Astra highlighted the delivery of eight Astra Spacecraft Engine electric propulsion systems in the fourth quarter, along with signed contracts totaling $11.7 million with undisclosed customers—a major non-U.S. defense prime and an international commercial space company.