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Investing.com -- AST SpaceMobile (NASDAQ:ASTS) stock rose 4% after the company announced it has secured $100 million in non-dilutive equipment financing to support its manufacturing and network deployment goals.
The space-based cellular broadband network developer said the financing facility, led by Trinity Capital Inc . (NASDAQ:TRIN), will provide long-term liquidity through 2031. The company has already drawn $25 million at closing against previously purchased equipment, with the facility using existing and planned equipment as collateral.
"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, in a statement.
The company, which is building a direct-to-smartphone satellite network, indicated this equipment financing represents its first such financing agreement and reflects its transition from research and development to full-scale manufacturing and network deployment.
AST SpaceMobile reported it concluded the second quarter with over $900 million in cash, cash equivalents, and restricted cash. The company has been actively managing its capital structure, having issued convertible notes in January and subsequently retiring approximately half of those notes after its share price increased by over 100% within six months.
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