AST SpaceMobile, Inc. Announces Pricing of $100,000,000 Public Offering of Class A Common Stock

Rhea-AI Summary

AST SpaceMobile, Inc. (ASTS) has priced its public offering of 32,258,064 shares of Class A Common Stock at $3.10 per share, with a 30-day option to purchase an additional 4,838,709 shares. The gross proceeds to the company will be approximately $100 million, with the potential to increase to $115 million if the underwriter exercises its option in full. The net proceeds will be used for general corporate purposes. The offering is expected to close on January 23, 2024. UBS Investment Bank, Barclays, Deutsche Bank Securities, B. Riley Securities, and Scotiabank are the joint book-running managers and runners for the offering. The company has filed a shelf registration statement with the SEC for the offering, declared effective on November 10, 2022.

Insights

Financial Analyst

The public offering of Class A common stock by AST SpaceMobile represents a significant capital-raising event, with the company aiming to generate approximately $100 million in gross proceeds. The pricing of the shares at $3.10 indicates the company's valuation in the context of its current market position and future growth prospects. For investors, the dilutive effect of issuing new shares is a critical factor to consider, as it can affect the earnings per share (EPS) metric and, consequently, the stock price. The underwriter's option for additional shares could further influence this dynamic.

From a financial standpoint, the intended use of the net proceeds for 'general corporate purposes' is relatively broad and stakeholders would benefit from more specific details on how these funds will be allocated to drive growth and enhance shareholder value. The involvement of prominent financial institutions as joint book-runners, including UBS Investment Bank and Barclays, adds a level of credibility to the offering and could potentially facilitate a more favorable reception from the market.

Market Research Analyst

The telecommunications sector and specifically the space-based communications market in which AST SpaceMobile operates, is characterized by high capital expenditure requirements. The influx of $100 million from this public offering could provide AST SpaceMobile with the necessary funds to maintain competitive momentum and invest in research and development. The timing of the offering, with a closing date set for January 23, 2024, suggests a strategic move by the company to capitalize on market conditions and investor sentiment at that particular juncture.

Moreover, the market's response to this offering will serve as an indicator of investor confidence in AST SpaceMobile's business model and its potential to disrupt traditional communication networks with its space-based solutions. As a market analyst, observing the post-offering stock performance will be crucial in assessing the market's risk appetite for innovative but capital-intensive ventures in the space sector.

MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. (NASDAQ: ASTS) (the “Company” or “AST SpaceMobile”) announced today the pricing of its previously announced public offering of its Class A common stock, par value $0.0001 per share (the “Class A Common Stock”). The Company has agreed to sell 32,258,064 shares of Class A Common Stock at a price to the public of $3.10 per share. The Company has granted the underwriter a 30-day option to purchase up to an additional 4,838,709 shares of Class A Common Stock at the public offering price, less the underwriting discounts and commissions. The gross proceeds to the Company from the offering, before deducting underwriting discounts, commissions and other offering expenses, will be approximately $100,000,000 million ($115,000,000 million if the underwriter exercises its option to purchase additional shares in full). The Company intends to use the net proceeds of the offering for general corporate purposes.

The offering is expected to close on January 23, 2024, subject to the satisfaction of customary closing conditions.

UBS Investment Bank and Barclays are acting as joint book-running managers for the offering. Deutsche Bank Securities, B. Riley Securities and Scotiabank are also acting as joint book-runners for the offering.

The Company has filed a shelf registration statement (including a prospectus) on Form S-3 with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. The registration statement was declared effective on November 10, 2022. Before you invest, you should read the base prospectus in that registration statement, the accompanying prospectus supplement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the prospectus supplement and accompanying base prospectus relating to the offering, when available, may be obtained from UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue Of The Americas, New York, NY 10019, or by email ol-prospectus-request@ubs.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York, 11717, by email: Barclaysprospectus@broadridge.com, or by telephone: (888) 603-5847.

This press release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This communication contains “forward-looking statements” that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile’s strategies and future financial performance, including AST’s future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 1 Bluebird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST’s ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile’s responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company’s filings with the SEC, including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on March 31, 2023.

AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors incorporated by reference into AST SpaceMobile’s Form 10-K filed with the SEC on March 31, 2023. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240118143218/en/

Investors:

Scott Wisniewski

investors@ast-science.com

Media:

Allison

Zac Rivera

347-251-1662

AstSpaceMobile@allisonpr.com

Source: AST SpaceMobile, Inc.

FAQ

What is the ticker symbol for AST SpaceMobile, Inc.?

The ticker symbol for AST SpaceMobile, Inc. is ASTS.

How many shares of Class A Common Stock is AST SpaceMobile offering?

AST SpaceMobile is offering 32,258,064 shares of Class A Common Stock.

What is the price per share for AST SpaceMobile's public offering?

The price per share for AST SpaceMobile's public offering is $3.10.

What is the expected gross proceeds to AST SpaceMobile from the offering?

The expected gross proceeds to AST SpaceMobile from the offering will be approximately $100 million, with the potential to increase to $115 million if the underwriter exercises its option in full.

Who are the joint book-running managers for AST SpaceMobile's offering?

The joint book-running managers for AST SpaceMobile's offering are UBS Investment Bank and Barclays.

When is the expected closing date for AST SpaceMobile's offering?

The expected closing date for AST SpaceMobile's offering is January 23, 2024, subject to the satisfaction of customary closing conditions.