Investment and strategic agreements accelerate
AST SpaceMobile's mission to close the global connectivity gap by
bringing 5G broadband service from space to billions of people
worldwide
$206.5 million financing, comprised of
convertible notes, non-dilutive commercial payments, and a planned
future draw on the company’s existing credit facility
AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the
company building the first and only space-based cellular broadband
network accessible directly by everyday smartphones, today
announced strategic investment from AT&T, Google and Vodafone
and aggregate new financing of up to $206.5 million in gross
proceeds. In addition to the $155 million strategic investment, the
company also plans to draw up to $51.5 million from the company’s
existing senior-secured credit facility.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240118463570/en/
(Photo: Business Wire)
New investors AT&T and Google, joined by existing investor
Vodafone, are at the forefront of wireless innovation, with
products and services serving billions of people daily. This
significant investment in AST SpaceMobile underscores confidence in
the company’s technology and leadership position in the emerging
space-based cellular direct-to-device market, with the potential to
offer connectivity to today’s 5.5 billion cellular devices when
they are out of coverage.
AST SpaceMobile currently operates the largest-ever commercial
communications array in low Earth orbit, the BlueWalker 3
satellite. The company invented the space-based direct-to-device
market, and its patented design facilitates broadband connectivity
directly to standard, unmodified cellular devices, adhering to
today’s cellular standards. In 2023, the company solidified its
status as the industry’s leading innovator, working alongside
partners AT&T, Vodafone, Rakuten and Nokia, to achieve multiple
historic technical first-evers in space-based cellular
communications – including the demonstration of 2G, 4G LTE and 5G
calls, and 14 Mbps download speeds per 5 Mhz channels – directly
from space to everyday smartphones. For the company’s planned
operational satellites, beams are designed to support capacity of
up to 40 Mhz, potentially enabling data transmission speeds of up
to 120 Mbps. With over 40 agreements and understandings with mobile
network operators globally, who collectively service over 2 billion
subscribers, AST SpaceMobile’s pioneering in-orbit technology is
poised to be the solution for eliminating cellular connectivity
gaps around the world.
Abel Avellan, Chairman and CEO of AST SpaceMobile, said, “Our
vision at AST SpaceMobile has always been to chart a course of
collaborative innovation and integration with the world's leading
wireless companies, which is why we are so thrilled to be welcoming
this new strategic investment from AT&T, Google and Vodafone.
With this strategic investment, we are gaining capital, invaluable
expertise, and strategic partnership. This investment comes
alongside prior investments by other leaders in the wireless
ecosystem, including Rakuten, American Tower, and Bell Canada, all
of whom are not only part owners of AST SpaceMobile but also serve
as our technology partners and customers. Each new partnership
signifies that market leaders worldwide have tremendous confidence
in our vision and ability to ensure that the future of cellular
broadband is borderless."
Chris Sambar, Executive Vice President, Head of Network,
AT&T, said “Through our work with AST SpaceMobile, we’ve
already proven the possibilities that satellite has to offer in
helping connect more people via text, voice and video. We’re
excited to deepen our relationship with this investment as we
continue to drive a first-of-its-kind innovation forward and work
together to achieve this shared vision of space-based connectivity
for consumers, businesses and first responders all around the
globe.”
Margherita Della Valle, Vodafone Group chief executive, said
“Vodafone’s investment and collaboration with AST SpaceMobile will
help make our mobile connectivity services available everywhere for
our customers across Europe and Africa. Customers in remote rural
areas, on land or out at sea, will be able to benefit from fast and
reliable 5G broadband directly to their existing smartphones
without the need for specialist equipment.”
The strategic investment is intended to support the commercial
roll-out of AST SpaceMobile’s network and is comprised of a mix of
equity-linked capital and non-dilutive commercial payments. The
investment includes:
- $110 million of 10-year subordinated convertible notes with
5.50% interest (which may be paid in kind), with a conversion price
of $5.75 per share, a 39% premium to the final trading price on
January 16, 2024; invested by AT&T, Google and Vodafone
- $20 million revenue commitment from AT&T, predicated on the
launch and successful initial operation of the first 5 commercial
satellites
- $25 million minimum revenue commitment from Vodafone, subject
to a definitive agreement
The non-dilutive commercial payments by customers of the
SpaceMobile network, creditable against future service revenue,
provide a model for other wireless companies around the world to
participate in the initial rollout of commercial SpaceMobile
service.
In addition to the strategic investment, the new investors
expanded their strategic and commercial ties to support the
buildout of the SpaceMobile network, including:
- Vodafone and AT&T have placed purchase orders for network
equipment from AST SpaceMobile to support planned commercial
service, for an undisclosed amount
- Google and AST SpaceMobile agreed to collaborate on product
development, testing and implementation plans for SpaceMobile
network connectivity on Android and related devices
UBS Investment Bank, Barclays and Quilty Space acted as
financial advisers to AST SpaceMobile on the strategic investment,
with Sullivan & Cromwell LLP serving as legal counsel. The
terms and conditions of the transaction are more fully described in
the Company’s Current Report on Form 8-K, being filed today with
the Securities and Exchange Commission.
AST SpaceMobile has more than 3,100 patent 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.
The company also has agreements and understandings with more
than 40 mobile network operators globally, which have over 2
billion existing subscribers total, including Vodafone Group,
Rakuten Mobile, AT&T, Bell Canada, Orange, Telefonica, TIM,
MTN, Saudi Telecom Company, Zain KSA, Etisalat, Indosat Ooredoo
Hutchison, Telkomsel, Smart Communications, Globe Telecom,
Millicom, Smartfren, Telecom Argentina, Telstra, Africell, Liberty
Latin America and others. Vodafone, Rakuten, American Tower and
Bell Canada are also existing investors in AST SpaceMobile.
AST SpaceMobile recently announced the achievement of
Space-Based 5G Cellular Broadband Connectivity From Everyday
Smartphones. A video memorializing the 5G connection and other
testing milestones using BlueWalker 3 can be viewed here.
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. 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 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/20240118463570/en/
Investor Contact: Scott Wisniewski
investors@ast-science.com
Media Contact: Allison Zac Rivera 347-251-1662
AstSpaceMobile@allisonpr.com
AST SpaceMobile (NASDAQ:ASTS)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
AST SpaceMobile (NASDAQ:ASTS)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024