ALBAWABA – Despite Space Capital’s managing partner Chad Anderson report that 2023 investments into the Space industry have seen a closer peak to the 2021 high record, with $2.6 billion bringing the total to $12.5 billion, multiple space agencies are reporting cancellations of space flights that were scheduled for 2024, citing financial hurdles.
With Space start-ups like Astra and Sidus Space going public in 2021, then seeing a huge drop in their share price 75 percent and 99 percent respectively, and Momentus recently warning investors of shockingly low financial strength even after the resuscitation attempt of 1-for-50 stock split in Aug. 2023.
Astra, once valued at $2.5 billion, has made a 1-to-15 reverse stock split back in Sep. 2023 to avoid a Nasdaq delisting, currently worth less than $50 million and struggling to collect investments. The company has put a halt to its rocket launches back in 2022, switching focus to Satellite launches without manufacturing, announcing in 2023 Oct. its plans to secure $15 million to $20 million in funding, Astra has been successful in getting $13.4 million from JMCM Holdings LLC and Sherpa Ventures Fund II in Nov., with the company’s founders announcing a take-private deal in the same month, investors are still waiting on news regarding the aforementioned and how it might materialize for the struggling company currently selling at $2.37 per share.
Astra Space weighs up selling parts of its business as it looks for cash
— John Marcellus (@safespace4space) October 11, 2023
As Astra Space continues to search for a lifeline to avoid bankruptcy, the company is reportedly weighing up selling a 51% stake in its in-space propulsion business or selling other parts of the business, pic.twitter.com/hgBwy16IDL
Sidus Space, has been delaying its debut satellite since late 2022, with March being the current target to put the satellite in orbit, evaluated at $9.65 million, a mere market cap compared to its initial $200 million when it began trading back in 2021, is currently facing funding issues, having to do a 1-to-100 reverse stock split to comply with Nasdaq’s regulations last month.
Momentus on the other hand, is facing potential bankruptcy according to CNBC, with the next few weeks being critical for the company, once valued at $1 billion, to find a new lifeline after dropping its plans to launch customer satellites in March and having to let go of around 20 percent of its workforce back in Nov. 2023.
However, not all Space future is looking grim, as Space News reported that The European Commission has came to an agreement with European Space Agency and European Investment Bank that aims to provide multi-billion funding to multiple space agencies and a more simplified access to financial resources for these companies.
