AST SpaceMobile falls after planned convertible bond sale
AST SpaceMobile's ASTS.O shares fell 12.5% to $58 post-market as it plans to raise capital.
The Midland, Texas-based firm announced a private offering of $1 bln convertible bonds due Feb. 1, 2024.
The company intends to use net proceeds for growth and to secure additional access for its space-based cellular broadband network, including partnerships and/or acquisitions.
It also intends to use some proceeds to pay the cost of capped call transactions to offset potential dilution.
ASTS, whose backers include Alphabet GOOGL.O, AT&T T.N and Vodafone VOD.L, has about a $25.7 bln market cap.
Shares finished down 3.6% at $66.31 on Wednesday, down about 9% year to date.
Of 12 analysts covering the stock, the recommendation breakdown is 5 "buy", 5 "hold" and 2 "sell"; median price target $82.12, per LSEG data.
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