Astra Space says 15% of cash, equivalents, marketable securities held with SVB

In a regulatory filing, Astra Space (ASTR) disclosed that on March 10, the company learned that Silicon Valley Bank, Santa Clara, California, (SIVB) was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver. The filing added: "On March 12, 2023, the Secretary of the Treasury, the chair of the Federal Reserve Board and the chairman of the FDIC released a joint statement related to the FDIC’s resolution of the SVB receivership. The Statement provides that ‘[d]epositors will have access to all of their money starting Monday, March 13.’… As of March 10, 2023, the company’s cash is held on deposit with SVB. The cash represents approximately 15% of the company’s current cash, cash equivalents and marketable securities, which the Statement said the company will have access to starting on Monday, March 13, 2023. The company’s cash equivalents and marketable securities are held in securities accounts with an affiliate of SVB. In addition, SVB has issued letters of credit on behalf of the company related to security deposits of the company for the lease of its Skyhawk and Sunnyvale facilities. At the time this current report was issued, the company does not know if and to what extent the closure of SVB will affect the company’s ability to access its cash, and to access and sell its cash equivalents and marketable securities or impact the letters of credit securing the company’s security deposit obligations to its primary landlords. The company is working expeditiously to open deposit accounts with new banking partners to diversify its banking relationships." Reference Link