US-based rocket launch company Astra Space is weighing potential sale of some of its businesses, reported Bloomberg, citing sources.
Astra Space is looking to sell a 51% stake of its in-space propulsion unit, one of the sources said, adding that the company could seek a valuation of over $100m for the business.
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A second source claimed that Astra Space is considering the sale of multiple business units, such as its machinery unit, a part of its rocket factory, and the in-space propulsion business.
The California-headquartered company is yet to make a final decision and could decide against selling its stake.
Set up in 2016, Astra Space seeks to manufacture small rockets to launch small satellites into orbit.
The business, however, has experienced a number of in-flight launch mishaps for customers and development delays, including an unsuccessful NASA mission.
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By GlobalDataAstra Space CEO Chris Kemp declined to comment on the development, reported the publication.
In August 2023, Astra Space announced plans to lay off 25% of its workforce and reallocated some 50 engineering and manufacturing staff to support the Astra Spacecraft Engine business.
At the time, the company also said it hired investment bank PJT Partners to serve as the financial adviser for financing activities and to explore strategic investments in the spacecraft engine business to bolster the company’s balance sheet.
In June 2021, the company listed on the NASDAQ stock exchange through a merger with special purpose acquisition company (SPAC) Holicity.
The SPAC merger valued Astra Space at around $2.1bn and based on its closing stock price of $1.31 on 10 October 2023, the company was valued at $24m, the publication said.
