BUZZ-AST SpaceMobile tumbles after announcing convertible offering, preliminary results

Reuters
01-23
BUZZ-AST SpaceMobile tumbles after announcing convertible offering, preliminary results

** AST SpaceMobile's ASTS.O shares down 12.2% to $19.75 post-market as satellite communication firm seeks capital raise and releases preliminary results

** Midland, Texas-based co says offering privately $400 mln convertible bonds due 2032

** Co plans to use portion of net proceeds to pay for capped calls, remainder for working capital, or other purposes, including strategic transactions

** Also, co says as of Dec 31, 2024 it had cash and restricted cash of approx $567.5 mln vs $88.1 mln in 2023, and expects for three months ended Dec 31 total operating expenses of $58.3-$62.3 mln

** ASTS shares on Weds closed down 2.6% at $22.49, giving co about $6.5 bln market cap, per LSEG

** In Nov, Jeff Bezos' rocket firm Blue Origin inked multi-launch deal with ASTS to deploy co's direct-to-cellular satellites "over a multi-year period" using Blue's New Glenn rocket

** ASTS shares up 6.6% YTD after soaring 250% in 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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