The Space Investor - 🚀 Astra To Seek Sale?

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• Also known as Apollo Fusion, the Company that Astra acquired in 2021 for $145M.
   
• In August, Astra announced a "strategic reallocation" of workforce from its Launch Services organization to its Astra Spacecraft Engines business "to support its growing customer base and order backlog of its spacecraft engines."
   
• Astra is reportedly seeking valuation of the business unit at >$100M, one source noted. A second source stated that Astra is weighing the potential sale of various parts of its business, including its equipment, parts of its rocket factory and its in-space propulsion division.
   
• This news follows a prior reduction in workforce by ~25% and a stock that is down -99% from its SPAC debut at $2.1B valuation. 
   
• To add on to the pain, ASTR shares also fell below the $1.00 per share mark just 19 days after its 1-for-15 reverse split on 9/14/2023. Things aren't looking great for Astra right now..

• An investor group led by Sophis Investments, Roark’s Drift LLC, and three co-founders of main operating subsidiary, Tyvak Nano-Satellite Systems, sent a letter to the Board on Wednesday.
   
• The group holds an 8.4% stake in the Company are pushing for the following: 
  • 1) Separate the role of CEO and Chairman, and install a new CEO
  • 2) Evaluate and implement best-in-class corporate governance practices
  • 3) Commence a comprehensive strategic review process
     
• Noting that "we recognize that many SPACs have underperformed in the public markets, however, we believe the issues plaguing Terran are largely self-inflicted and can be remediated if the right management team and directors are installed immediately. Accordingly, time is of the essence."
   
• Terran Orbital responded: “This is certainly a troubling sequence of events. Sophis Investments approached us several weeks ago in a manner that suggested if we did not pay them a monthly fee and give them shares for their “services” and the services of a hand-picked investment bank, that they would send this letter. We did not agree to their demands and so this letter followed – evidently as part of a contrived media strategy.”
   
• Terran shares are down -93% since the Company's SPAC debut. There is trouble in paradise..

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