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Astra Space | 8-K: Second Amendment to Securities Purchase Agreement and Second Amendment to Senior Secured Convertible Notes

SEC announcement ·  Mar 1 17:21
Summary by Moomoo AI
On February 26, 2024, Astra Space, Inc. entered into a significant amendment to its Securities Purchase Agreement and Senior Secured Convertible Notes, which included an extension of the closing date for subsequent financing, an increase in the maximum amount of convertible notes that can be issued, and an update to the Buyers Schedule. The same day, Astra Space closed a Subsequent Financing round with key insiders, including CEO Chris Kemp and CTO Adam London, raising $300,000 through the sale of Senior Secured Convertible Notes due 2025. The company disclosed that the net proceeds after expenses were approximately $275,000 and that it may issue up to an additional $10.9 million in convertible notes under the Purchase Agreement. The Subsequently Purchased Convertible Notes, maturing on November 15, 2025, are convertible...Show More
On February 26, 2024, Astra Space, Inc. entered into a significant amendment to its Securities Purchase Agreement and Senior Secured Convertible Notes, which included an extension of the closing date for subsequent financing, an increase in the maximum amount of convertible notes that can be issued, and an update to the Buyers Schedule. The same day, Astra Space closed a Subsequent Financing round with key insiders, including CEO Chris Kemp and CTO Adam London, raising $300,000 through the sale of Senior Secured Convertible Notes due 2025. The company disclosed that the net proceeds after expenses were approximately $275,000 and that it may issue up to an additional $10.9 million in convertible notes under the Purchase Agreement. The Subsequently Purchased Convertible Notes, maturing on November 15, 2025, are convertible into Class A common stock, with a cash payout on maturity based on the principal amount and a minimum return. The company also noted that the notes were sold in a transaction exempt from registration under the Securities Act and that the investors are accredited investors. Astra Space is required to file a registration statement by May 1, 2024, for the resale of the underlying shares. In a related event, the company's founders revised a non-binding proposal to acquire all outstanding common stock not owned by them for $0.50 per share, a significant discount from the closing price of $1.76 on February 26, 2024. The proposal is contingent on several conditions, including the company having $20 million in cash at closing. The Special Committee is considering the proposal, with the alternative being a potential Chapter 7 bankruptcy filing. The company is in discussions with the founders for interim financing to continue operations until a definitive agreement can be reached.

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