Astra Space (NASDAQ:ASTR) stock is rising higher on Thursday as investors in the space services company react to an offer to take it private.
This offer comes from Chris Kemp and Adam London. These are the founders of the company and also serve as its chairman and CEO, as well as its chief technology officer, respectively.
The two company founders are seeking to take Astra Space private in a deal that’s worth about $30 million. This has them offering to acquire all outstanding shares of ASTR stock at a price of $1.50 each. That represents a 103% premium over the stock’s prior closing price.
Investors will note that ASTR has been struggling since going public through a special purpose acquisition company (SPAC) merger in 2021. That includes a failed rocket launch in June 2022, layoffs, running late on debt payments and other troubles.
What This Means for ASTR Stock
It’s possible that Astra Space could benefit from going private. Doing so would reduce the spending required to remain a publicly listed company. That would be a boon to ASTR, considering the company’s cash reverse fell below $10.5 million in October.
Investors are reacting well to the take-private offer today with heavy trading of ASTR stock. As of this writing, more than 17 million shares of the company’s stock have changed hands. That’s already well above its daily average trading volume of about 329,000 shares.
ASTR stock is up 82.4% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
