Why Is AST SpaceMobile Stock Plummeting On Thursday?

AST SpaceMobile, Inc. ASTS shares are trading lower today. The company has filed a prospectus for the offer and sale of up to $400 million Class A common stock from time to time.

The company entered into an Equity Distribution Agreement with B. Riley Securities, Barclays Capital, BofA Securities, Cantor Fitzgerald, Deutsche Bank Securities, Roth Capital, Scotia Capital (USA), and UBS Securities for the sale of Class A Common Stock.

On September 3, 2024, the last reported sale price on Nasdaq of its Class A Common Stock was $29.41 per share. Each agent will earn up to 3.0% of the gross sales price for shares sold as a sales agent under the sales agreement.

The company plans to use the net proceeds from the sale for general corporate purposes.

On Thursday, the company announced confirmation for a September 12 launch target for BlueBird Satellites from Cape Canaveral, Florida.

The company expects to raise over $155 million from warrant redemptions, bringing its total cash to over $440 million on a pro forma basis as of June 30, 2024.

As of June-end, the company had pro forma cash, cash equivalents, and restricted cash of over $440.0 million, including over $155.0 million in expected warrant exchange proceeds.

Investors can gain exposure to the stock via Procure Space ETF UFO and Invesco Dorsey Wright Technology Momentum ETF PTF.

Price Action: ASTS shares are down 13.6% at $28.59 at the last check Thursday.

Photo via Company

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