AST SpaceMobile raises $179m in extra funding
August 15, 2023
By Chris Forrester
AST SpaceMobile is building what it claims will be the “first and only” space-based cellular broadband network accessible directly by standard smart phones.
“AST SpaceMobile continues to make history. This quarter we achieved space-based 4G LTE cellular broadband capabilities to everyday smartphones, reaching speeds above 10 Mbps during BlueWalker 3 testing alongside AT&T, Vodafone and Nokia”, said Abel Avellan, Chairman/CEO of AST SpaceMobile, as the compnay reported its Q2 numbers. “We are now laser-focused on the manufacturing of our BlueBird satellites. The first five satellites are fully-funded with a planned launch in Q1 2024 as we target to offer initial commercial service in 2024.”
AST says it has received “multiple offers” of outside investments.
“We are happy to announce the completion of a comprehensive financing package providing us up to $179 million of cash and liquidity”, said Sean Wallace, CFO/AST SpaceMobile. “This financing package is comprised of an up to $100 million Senior Secured Credit Facility and a $15 million Equipment-Backed Loan completed today, in addition to a $57 million previously announced common stock offering in June 2023 and $7 million raised under the ATM program during the second quarter of 2023.”
AST says it has signed more than 40 Memorandums of Interest and agreements with mobile network operators and a potential 2.4 billion subscribers.
“As of June 30th 2023, we had cash, cash equivalents, and restricted cash of $191.5 million. After June 30, 2023, added incremental cash and liquidity of up to $115 million from an up to $100 million Senior Secured Credit Facility with an initial gross draw of $48.5 million and a $15 million Equipment-Backed Loan,” says AST.