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$ASTR – ๐Ÿš€THE SPACE RACE IS ON๐Ÿš€

ASTRA is an exciting Space company backed by Bill Gates that recently completed its merger with Holicity. They are a launch vehicle company that sends payloads to space. This generally will take the form of satellites either for commercial or research purposes.

They already have **50** launches under contract and an example is the [*NASA TROPICS* mission](https://astra.com/news/nasa-tropics-astras-first-earth-science-mission/) and the *[Planet Payloads](https://spacewatch.global/2021/05/astra-launches-planet-labs-and-expands-payload-capacity/)* mission

**WHY NOW THOUGH??**

ASTRA just [merged](https://www.businesswire.com/news/home/20210629005877/en/Holicity-Board-Urges-Stockholders-to-Vote-TODAY-in-Support-of-Business-Combination-with-Astra-Space-Inc.) with Holicity last week and has already started to run up. They also have a significant catalyst coming in announcing a summer rocket launch. Currently their[ launch schedule](https://www.rocketlaunch.live/?filter=astra-space) shows four launches in 2022 but they have announced they have plans for a summer launch but a date is pending. This should be announced in the next couple of weeks and will bring a lot of attention to the company.

TA

They have already started to see some heavy volume and start a run up. There isn’t much selling pressure so we’re seeing consolidation while MMs load up on shares.

[Option volume](https://finance.yahoo.com/quote/ASTR/options?date=1626393600&p=ASTR) is pretty decent as well. What I like to see is not just significant volume for one strike date but August has fairly decent volume as well

**BUT ALL OF THIS IS SPECULATION, SO WHATS THE PROSPECTUS SAY?**

As a new company that just successfully merged, we have to take a look at the deal.

https://sec.report/Document/0001213900-21-015109/#aph036289a010

*Notwithstanding the foregoing, the Founder Shares will be released from the lock-up if (1) the closing price of the Companyโ€™s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (2) the Company consummates a transaction after the initial Business Combination which results in the stockholders having the right to exchange their shares for cash, securities or other property.*

Above is from their annual report, saying that they have to wait 6 months from the merger date to sell their shares and even then the stock price has to be at least above $12 for 30 days so the current entry is fairly safe long term.

https://sec.report/Document/0001213900-21-015109/#aph036289c005

Above is their prospectus where they say there will be only 30 million shares able to be traded until the lockup is over.

*On August 7, 2020, the Company consummated the Initial Public Offering of 27,500,000 Units at $10.00 per Unit, generating gross proceeds of $275.0 million.* – They then chose to sell another 2.5 million out of 4.1 million they are allowed to sell additionally.

๐Ÿš€**POSITIONS and more SPECULATION**๐Ÿš€

500 shares at 12.43 and 15 7/16 calls at 15$ strike and 20 8/20 calls at 15$ strike. I think we’ll continue to run up until the end of the summer and ASTR finds a price its comfortable at. My price target is 30$ for the short term but beyond 2021 the ceiling is incredibly high.

Edit: 500 shares idk why itโ€™s cut off ๐Ÿ˜‰

What do you think?

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17 Comments

  1. I generally distain Bill Gates and hope he gets hit by an asteroid, but that withstanding this is interesting and the options aren’t super expensive at the moment. I think with the Virgin Galactic Flight on Sunday (SPCE to the moon!) and BO flying later this month, there is a real possibility of a Space rush this summer like we saw with EVs last Fall

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