Astrotech Corporation (NASDAQ: ASTC) announced that its board of directors has approved a potential sale process for its 1st Detect Corporation subsidiary, developer of the TRACER 1000 mass spectrometry-based explosives and narcotics trace detection platform.

According to a press release, the company said it is evaluating the sale to generate capital for its previously announced lunar mining initiative. 1st Detect develops and manufactures the TRACER 1000, which the company claims is the only mass spectrometry explosives trace detection system certified and field-deployed in aviation security operations.

The board's decision follows several regulatory milestones, including TSA approval for air cargo screening, European Civil Aviation Conference certification for passenger and cargo screening including G1 approval and wand swabbing, entry into the TSA checkpoint certification process through the Transportation Security Laboratory, and a U.S. Department of Homeland Security award to advance the TRACER 1000 for next-generation explosives trace detection.

"The Board believes the right path to unlock that value for shareholders, may be a sale to a strategic or financial buyer capable of accelerating commercialization and worldwide deployment," said Thomas B. Pickens III, Chairman and Chief Executive Officer of Astrotech.

The company states that the current explosives trace detection market has relied on ion mobility spectrometry technology for approximately 30 years, and that U.S. and European authorities have signaled a shift toward mass spectrometry-based systems.

Astrotech said it is evaluating both strategic and financial buyers. The company noted that no transaction has been completed and that there is no guarantee a sale will occur on acceptable terms or at all.