AST SpaceMobile Provides Interim Business Update to Confirm Upcoming Orbital Launch and Warrant Redemption

Rhea-AI Summary

AST SpaceMobile (NASDAQ: ASTS) has confirmed a September 12th target launch date for its BlueBird satellites, each featuring the largest commercial communications array ever deployed in low Earth orbit. The company reports over $440.0 million in pro forma cash and cash equivalents as of June 30th, 2024, including over $155.0 million in expected warrant exchange proceeds.

The BlueBird satellites aim to provide non-continuous cellular broadband service across the United States and select global markets, supporting beta test users for AT&T and Verizon. AST SpaceMobile has agreements with over 45 mobile network operators globally, representing 2.8 billion existing subscribers. The company has secured additional strategic investments from AT&T, Verizon, Google, and Vodafone, as well as new contract awards with the U.S. Government through a prime contractor.

Positive

• Confirmed September 12th target launch date for BlueBird satellites
• Over $440.0 million in pro forma cash and cash equivalents as of June 30th, 2024
• Expected $155.0 million in warrant exchange proceeds
• Agreements with over 45 mobile network operators globally, representing 2.8 billion subscribers
• Additional strategic investments secured from AT&T, Verizon, Google, and Vodafone
• New contract awards with the U.S. Government through a prime contractor
• $51.5 million in gross proceeds available to draw under the Senior Secured Credit Facility

Negative

• Non-continuous cellular broadband service initially
• Exact timing of orbital launch subject to change based on various factors

Insights

Aerospace Engineer

The upcoming launch of AST SpaceMobile's BlueBird satellites marks a significant milestone in space-based cellular technology. Each satellite, featuring the largest commercial communications array ever deployed in low Earth orbit, is designed to provide direct cellular broadband to standard smartphones. This innovation could revolutionize global connectivity, especially in underserved areas.

The planned 100% nationwide coverage with over 5,600 coverage cells in the United States demonstrates the potential scale of this technology. However, investors should note that initial service will be non-continuous and to select markets. The success of the launch and subsequent operations will be important in validating the company's technology and business model.

Financial Analyst

AST SpaceMobile's financial position appears robust, with $440.0 million in pro forma cash and cash equivalents as of June 30, 2024. This includes $155.0 million in expected warrant exchange proceeds, strengthening their liquidity. The additional $51.5 million available under the Senior Secured Credit Facility provides further financial flexibility.

The company's strategy of seeking non-dilutive capital and commercial prepayments is investor-friendly. Their commitment to avoiding underwritten public equity offerings through 2024 suggests confidence in their current capitalization. However, investors should monitor the company's burn rate and progress towards revenue generation, as space-based projects often face delays and cost overruns.

Telecommunications Expert

AST SpaceMobile's partnerships with major telecom players like AT&T, Verizon, Vodafone and others covering 2.8 billion existing subscribers globally is impressive. These partnerships provide a potential massive customer base and validate the market demand for space-based cellular broadband.

The planned beta testing with AT&T and Verizon users in the U.S. will be a critical proof of concept. If successful, it could lead to rapid adoption and expansion. However, the technology's performance, particularly in terms of latency and data speeds compared to terrestrial networks, will be important for widespread acceptance. Investors should closely watch the results of these initial tests and subsequent user feedback.

- September 12^th target launch date confirmed for BlueBird satellites, each the largest communications array ever deployed in low Earth orbit

- Over $440.0 million in pro forma cash and cash equivalents as of June 30^th, 2024, including over $155.0 million in expected warrant exchange proceeds

MIDLAND, Texas--(BUSINESS WIRE)-- AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones designed for both commercial and government use, today provided an interim business update. The launch of AST SpaceMobile’s upcoming satellites is targeted on or after September 12^th from Cape Canaveral, Florida and over $155.0 million in proceeds is expected from its previously-announced redemption of warrants, resulting in over $440.0 million in cash on a pro forma basis as of June 30, 2024.

AST SpaceMobile BlueBird 1-5 Launch Announcement

Orbital Launch Update

The first five commercial satellites, called BlueBirds, each featuring the largest ever commercial communications arrays to be deployed in low Earth orbit, represent a significant milestone in AST SpaceMobile’s mission to bridge the digital divide and provide reliable cellular broadband service to billions worldwide.

This large array of antennas is designed to reach standard smartphones directly at cellular broadband speeds for voice, data and video and other non-communications government applications. After launch, the BlueBird satellites are planned to offer non-continuous cellular broadband service across the United States and in select markets globally. This initial service, based on premium low band spectrum, is planned to support beta test users for AT&T and Verizon, and will target approximately 100% nationwide coverage from space with over 5,600 coverage cells in the United States.

“This is a pivotal moment for AST SpaceMobile as we bring our vision to enhance cellular connectivity globally, with the support of our strategic partners and the unwavering commitment of our team,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. “As we shift our manufacturing focus to increase Block 2 production of the active payload systems and other components for the first 17 Block 2 satellites, we are excited to bring this revolutionary technology to the world. We believe space-based broadband cellular connectivity will revolutionize how people connect, empowering communities and driving economic growth on a global scale.”

The exact timing of orbital launch is subject to change based on a number of factors, including launch readiness of the launch provider, weather conditions, and other factors, many of which are beyond our control.

Members of the public will be able to watch a live broadcast on the launch day on AST SpaceMobile's YouTube channel.

Financial Update

The company has over $440.0 million in pro forma cash, cash equivalents and restricted cash as of June 30, 2024. This includes over $155.0 million in expected warrant exchange proceeds with $71.0 million already received. We have additional liquidity of $51.5 million in gross proceeds available to draw under the Senior Secured Credit Facility, subject to certain conditions and approvals.

In addition to supporting near-term operational initiatives, these additional cash reserves are expected to support financial efficiencies including the cash payment of interest under the Subordinated Convertible Notes and early retirement of the Senior Secured Credit Facility, minimizing cost and dilution. The company continues to advance discussions with quasi-governmental sources of non-dilutive capital, as well as discussions with additional strategic partners, following the blueprint of commercial prepayments alongside commercial agreements.

“We are committed to funding AST SpaceMobile's growth in a judicious manner, at every step of the way cognizant of minimizing cost and dilution, with a focus on commercial prepayments and quasi-governmental sources of capital,” said Andrew Johnson, Chief Financial and Legal Officer of AST SpaceMobile. “Our use of the prior at-the-market facility is a great example of this discipline, and we expect usage of a similar facility as a supplemental source of capital. As we have previously indicated, we continue to have no plans to raise capital in an underwritten public equity offering through at least the end of 2024 and we believe we are sufficiently capitalized to execute our near-term operational initiatives.”

AST SpaceMobile has more than 3,400 patents and patent-pending claims for its technology and operates state-of-the-art, vertically integrated manufacturing and testing facilities in Midland, Texas, which collectively span 185,000 square feet.

During 2024, AST SpaceMobile has secured additional strategic investments from AT&T, Verizon, Google and Vodafone, as well as new contract awards with the United States Government through a prime contractor. The company has agreements with more than 45 mobile network operators globally, which have over 2.8 billion existing subscribers in total, including Vodafone Group, Rakuten Mobile, AT&T, Verizon, Bell Canada, Orange, Telefonica, TIM, Saudi Telecom Company, MTN, Zain KSA, Etisalat, Indosat Ooredoo Hutchison, Telkomsel, Smart Communications, Globe Telecom, Millicom, Smartfren, Telecom Argentina, Telstra, Africell, Liberty Latin America and others. Rakuten, American Tower and Bell Canada are also existing investors in AST SpaceMobile.

About AST SpaceMobile

AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

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 could 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 SpaceMobile’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 Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024.

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 in AST SpaceMobile’s Form 10-K filed with the SEC on April 1, 2024. 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/20240904664593/en/

Investor Contact:

Scott Wisniewski

investors@ast-science.com

Media Contact:

Allison

Eva Murphy Ryan

917-547-7289

AstSpaceMobile@allisonpr.com

Source: AST SpaceMobile, Inc.

FAQ

When is the target launch date for AST SpaceMobile's BlueBird satellites?

AST SpaceMobile (ASTS) has confirmed a target launch date of September 12th, 2024, for its BlueBird satellites from Cape Canaveral, Florida.

How much pro forma cash does AST SpaceMobile (ASTS) have as of June 30th, 2024?

AST SpaceMobile (ASTS) reports over $440.0 million in pro forma cash and cash equivalents as of June 30th, 2024, including over $155.0 million in expected warrant exchange proceeds.

What is unique about AST SpaceMobile's (ASTS) BlueBird satellites?

AST SpaceMobile's (ASTS) BlueBird satellites feature the largest commercial communications arrays ever deployed in low Earth orbit, designed to provide cellular broadband service directly to standard smartphones.

How many mobile network operators has AST SpaceMobile (ASTS) partnered with?

AST SpaceMobile (ASTS) has agreements with more than 45 mobile network operators globally, which collectively represent over 2.8 billion existing subscribers.