Why AST SpaceMobile Shares Are Falling Wednesday

AST SpaceMobile Inc ASTS shares are trading lower Wednesday after the company announced a public offering of common stock.

What Happened: AST SpaceMobile priced a public offering of 12.5 million shares for gross proceeds of $59.4 million. The company intends to use the proceeds for general corporate purposes, including expected cash payments related to launch services and additional equipment in the third quarter.

The shares are expected to be offered from time to time in one or more transactions on the Nasdaq, the over-the-counter market and through negotiated transactions. The offering is expected to close on June 30.

AST SpaceMobile aims to build the first and only space-based cellular broadband network accessible directly by standard mobile phones.

See Also: Nasdaq, S&P 500 Futures Slip Ahead Of Powell Speech, Bank Stress Test Results: Why This Analyst Rates Stocks 'Overweight' And Says 'Buy Weakness'

ASTS Price Action: AST SpaceMobile shares were down 29.4% at $4.50 at the time of writing, according to Benzinga Pro.

Photo: David Mark from Pixabay.