AST SpaceMobile Inc (NASDAQ:ASTS) shares are facing heavy selling pressure in after-hours Wednesday after the company announced a proposed private offering.
- AST SpaceMobile stock is taking a hit today. What’s pressuring ASTS stock?
AST SpaceMobile Announces Convertible Notes Offering
AST SpaceMobile said it intends to offer $1 billion of convertible senior notes due 2034 in a private offering to qualified institutional buyers. The company plans to grant the initial purchasers a 13-day window to buy up to an additional $150 million of the notes.
AST SpaceMobile intends to use a portion of the net proceeds to pay the cost of capped call transactions. The remaining proceeds will be used to fund growth initiatives and secure additional launch capacity for its space-based cellular broadband network, including through partnerships or acquisitions that would further vertically integrate the business and reduce its reliance on third-party launch providers.
AST SpaceMobile had approximately $3.5 billion of total cash, cash equivalents and restricted cash as of March 31.
ASTS Shares Dive After The Bell
ASTS Price Action: AST SpaceMobile shares were down 12.55% in Wednesday’s after-hours session, trading at $57.99 at the time of publication, according to Benzinga Pro.
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