Bullish indicating open at $55-$60, IPO prices at $37
MIDLAND, Texas - AST SpaceMobile, Inc. (NASDAQ:ASTS), a $15.4 billion market cap space technology company with strong liquidity metrics and a current ratio of 10.62, announced Thursday it has closed a $100 million equipment financing facility led by Trinity Capital Inc. (NASDAQ:TRIN), an alternative asset manager.
The non-dilutive financing will support the company’s manufacturing and network deployment goals for 2025 and 2026 as it builds its space-based cellular broadband network designed to work directly with standard smartphones. According to InvestingPro data, while the company isn’t currently profitable, analysts anticipate 13% revenue growth in FY2025.
The facility provides long-term liquidity through 2031, with $25 million already drawn at closing against previously purchased equipment. The financing uses existing and planned equipment as collateral and is structured to accommodate future debt capital.
"This new non-dilutive financing enables AST SpaceMobile to continue its strong momentum executing against its accelerated operational plans," said Andrew Johnson, Chief Financial Officer of AST SpaceMobile, according to the company’s press release.
The equipment financing represents the company’s first such financing agreement and follows other capital structure developments, including a convertible note issuance in January 2025, retirement of approximately half those notes after a share price increase, and use of an At-the-Market facility.
AST SpaceMobile reported having over $900 million in cash, cash equivalents, and restricted cash at the end of the second quarter.
The company is developing what it describes as the first global cellular broadband network in space that will operate directly with unmodified mobile devices for both commercial and government applications. InvestingPro analysis suggests the stock is currently overvalued, though it has delivered strong returns with the stock up over 90% in the past six months. For deeper insights into ASTS’s valuation and 15+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
In other recent news, AST SpaceMobile announced significant financial maneuvers, including the repurchase of $225 million in convertible notes due 2032. This move is expected to remove approximately 8.3 million underlying shares and eliminate around $63.8 million in remaining interest payments. The company is funding this repurchase through a registered direct offering of 9.45 million shares of Class A common stock. Additionally, AST SpaceMobile has entered into a strategic partnership with Vodafone Idea to enhance mobile connectivity in India’s underserved regions. This collaboration aims to leverage AST SpaceMobile’s satellite technology to connect standard smartphones without modifications. The partnership positions AST SpaceMobile to tap into India’s vast telecom market, which has over 1.1 billion mobile subscribers. In other developments, BofA Securities initiated coverage of AST SpaceMobile with a Neutral rating, citing the company’s high projected growth and unique position in the space-based communications sector.
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