AST SpaceMobile Stock Is Tumbling After Hours: What's Going On?

AST SpaceMobile Inc ASTS shares are moving lower in extended trading Tuesday after the company announced a public offering of common stock.

The Details: AST SpaceMobile has launched a public offering of 12 million shares. 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 pricing is subject to prevailing prices at the time of the sales.

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

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ASTS Price Action: AST SpaceMobile shares were down 11.3% after hours at $5.65 at the time of publication, according to Benzinga Pro.

Photo: Arek Socha from Pixabay.