🚀 Astra To Seek Sale?

🚀 Astra To Seek Sale?

October 13, 2023

The Space Scoop

Week Ended 10.12.2023

Happy Friday! Change is looming at Astra and Terran Orbital, Maersk will soon be using Starlink on its ships, and Viasat is expecting positive cash flow sooner than expected. Lets dive in.

Market Max-Q

Top Stories

1) Astra ($ASTR) is reportedly considering selling a 51% stake in its space propulsion subsidiary, Astra Spacecraft Engines, Inc.

  • 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..

2) Terran Orbital ($LLAP) investors push for a strategic review and management change.

  • 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..

In Other News

Proteus Space Raises $4.2M Seed

The Los Angeles based-startup plans to develop customized satellites assisted by AI as an alternative to standardized buses. The round was led by Moonshots Capital, with participation from Lavrock Ventures, The Veteran Fund, Mana Ventures, AIN Ventures, Capital Factory and Industrious Ventures.

Auriga Space Raises $5M Funding

Emerging from stealth, the electromagnetic launch system startup plans to prototype and expanding its Los Angeles facility. Investors include Trucks VC, Seraphim Space ($SSIT), Possible Ventures, Unlock Ventures, DNX Ventures, Monte Carlo Capital, Vermillion Ventures, Heuristic Capital and Syndicate 708.

Chart of the Week

2022 Space Investing: Start-up ventures attracted ~$8 billion in total financing via 154 deals, involving more than 400 investors, in 123 companies based in 20+ countries. (Source: BryceTech)

Links

• Maersk Signs Deal With Starlink for Its Ocean Fleet of More Than 330 Ships• Spire ($SPIR) Selected by MAN Energy Solutions To Accelerate Digitalization Across the Maritime Industry• Momentus ($MNTS) Customers Integrated and Shipped to SpaceX Launch Site• Planet’s ($PL) Pelican Tech Demonstration Satellite Ready for Launch• Momentus ($MNTS) To Provide Delivery Service for RIDE! Space• Sidus ($SIDU) Announces $2M Direct Offering and Concurrent Private Placement• Viasat ($VSAT) Provides Interim Update on VS-3 F1 Satellite and Anticipates Positive FCF Earlier Than Planned• Terran Orbital ($LLAP) Opens New Printed Circuit Board Assembly Facility

Opinion

• September Space Stock Review• Virgin Galactic ($SPCE): Delta Class Timeline Is Too Optimistic• Iridium ($IRDM) Could Be on the Onset of a Bullish Trajectory

Earnings Calendar

• $LMT: Oct 17 - Before Market Open• $IRDM: Oct 19 - Before Market Open• $BA: Oct 25 - Before Market Open• $GD: Oct 25 - Before Market Open• $NOC: Oct 26 - Before Market Open• $MDA: Nov 8 - Before Market Open• $SPIR: Nov 8 - After Market Close• $RKLB: Nov 8 - After Market Close

*Company confirmed dates only.