AST SpaceMobile confirms upcoming satellite launch and financial update

AST SpaceMobile confirms upcoming satellite launch and financial update
by Clarence Oxford
Los Angeles CA (SPX) Sep 05, 2024

AST SpaceMobile, Inc. has provided an interim business update. The company has scheduled the launch of its upcoming satellites on or after September 12th from Cape Canaveral, Florida. Additionally, AST SpaceMobile expects to secure over $155 million from its previously announced warrant redemption, bringing its cash reserves to over $440 million on a pro forma basis as of June 30, 2024.

AST SpaceMobile plans to launch its first five commercial satellites, known as BlueBirds, which feature the largest commercial communications arrays ever deployed in low Earth orbit. These satellites mark a significant step in the company's mission to deliver reliable cellular broadband service globally, directly to standard smartphones.

The BlueBird satellites are designed to provide cellular broadband speeds for voice, data, video, and other non-communications government applications. After deployment, the satellites will offer non-continuous cellular broadband service across the United States and select global markets. This initial service, utilizing premium low-band spectrum, will support beta testing for AT&T and Verizon, targeting nearly 100% nationwide coverage in the U.S. with over 5,600 coverage cells.

"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 launch timing may vary due to factors such as the launch provider's readiness, weather conditions, and other external factors. The public will have the opportunity to watch a live broadcast of the launch on AST SpaceMobile's YouTube channel.

Financial Overview
As of June 30, 2024, AST SpaceMobile reports over $440 million in pro forma cash, cash equivalents, and restricted cash. This figure includes more than $155 million in expected proceeds from the warrant redemption, with $71 million already received. The company also has access to an additional $51.5 million in gross proceeds under its Senior Secured Credit Facility, pending certain conditions and approvals.

These financial resources are expected to support AST SpaceMobile's near-term operational goals, including the payment of interest under the Subordinated Convertible Notes and the early retirement of the Senior Secured Credit Facility, aimed at reducing costs and dilution. The company continues to explore opportunities for non-dilutive capital from quasi-governmental sources and additional strategic partnerships.

"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 holds more than 3,400 patents and patent-pending claims for its technology and operates state-of-the-art manufacturing and testing facilities in Midland, Texas, totaling 185,000 square feet.

In 2024, AST SpaceMobile has attracted strategic investments from AT&T, Verizon, Google, and Vodafone, alongside new contract awards with the U.S. Government through a prime contractor. The company has agreements with over 45 mobile network operators globally, covering more than 2.8 billion subscribers, including major partners such as Vodafone Group, Rakuten Mobile, AT&T, Verizon, Bell Canada, Orange, Telefonica, and others. Investors also include Rakuten, American Tower, and Bell Canada.