Astra, a small launch vehicle developer, will become a publicly-traded company following its merger with SPAC, a Special-purpose Acquisition Company. This merger will provide the Company with $500 million, and its new value will be at least $2 billion. Astra, which nearly got to orbit in December last year, announced an agreement to merge with Holicity. On February 2nd, 2021, Astra went public about its collaboration with Holicity, a SPAC by `Craig McCaw developed last year.
The merger is expected to finalize in the second quarter, which will evolve Astra to become a publicly-traded company on the Nasdaq Exchange. It will adopt the ticker symbol ASTR. According to the merger conditions, Holicity chief executive officer and chairman McCaw will join Astra’s board.
From the merger, Astra is hoping to raise at least $489 million. This total includes $200 million on private investment in public equity, with BlackRock leading. Also, Astra expects to make $30 million from a concurrent Series C round. The deal values up to $2.1 billion.
This investment will work on completing its manufacturing facilities and moving to automatic production capabilities. These facts will help the Company to increase its launch date. In an investor presentation in the Company with guidelines on security, the Company aims at launching 300 times in 2025. This number was almost three times the orbital launches worldwide in 2020.
Astra’s chief financial officer, Kelyn Brannon, talked about their aim to deploy this transaction’s proceeds to improve their growth. The Company plans to accelerate the operation to meet the customers’ needs. She went ahead to explain that this deal with full-fund Astra to maximum profits by 2024.
The project will help Astra’s revenue rise from $4 million in 2021 to $1.5 billion in 2025. This primary revenue source would be the launch business. Astra has a launch system that is flexible and meets customers’ needs. Chief executive officer of Astra, Chris Kemp, talked about the opportunity to design any spacecraft and crafts that match the launch system. This chance will help the Company to address a large market at a fast rate.
Astra’s near-term main focus is on the launch business, where they aim to place a payload in orbit. Their second test in December was a relative success. Kemp also went ahead to state that the Company has its first fifty launches under contract. The Company got the attention of McCaw with its frequent, inexpensive launches of spacecraft.
People are hoping to watch a successful merger with benefits for both the Company and the customers.