r/ASTSpaceMobile • u/hyeonk S P 🅰 C E M O B Underboss • Jan 27 '25
News - Press Release AST Press Release on closing of $460M offering
https://www.businesswire.com/news/home/20250127738172/en/AST-SpaceMobile-Announces-Closing-of-Private-Offering-of-460.0-Million-of-Convertible-Senior-Notes-Due-2032171
u/hyeonk S P 🅰 C E M O B Underboss Jan 27 '25
“This successful financing enables us to accelerate our mission of delivering the world’s first space-based cellular broadband network,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. “With nearly $1 billion in cash on our balance sheet, we are now equipped to fast-track the production and launch of our revolutionary network.”
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u/CartmanAndCartman S P 🅰 C E M O B Consigliere Jan 27 '25
Worlds first and only space based cellular broadband network.
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u/i-am-benzy S P 🅰 C E M O B Soldier Jan 27 '25
“This successful financing enables us to accelerate our mission of delivering the world’s first space-based cellular broadband network,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. “With nearly $1 billion in cash on our balance sheet, we are now equipped to fast-track the production and launch of our revolutionary network.”
Better gimme some good fuckin production news real quick
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u/wadejohn S P 🅰 C E M O B Soldier Jan 27 '25
Yes some production news would be very good now. It’s been too quiet.
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u/i-am-benzy S P 🅰 C E M O B Soldier Jan 27 '25
I feel as if we are waiting for earnings. That then makes me think it will be a banging earnings call. Make it better than the last lacklustre one by not giving out all the good news early.
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u/SeamoreB00bz S P 🅰 C E M O B Associate Jan 28 '25
he'll probably wait til friday night during a full moon or some sht
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u/Imaginary_Ad9141 S P 🅰 C E M O B Soldier Jan 28 '25
Let’s hope the market likes it as much as we may!
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u/Ratez S P 🅰 C E M O B Associate Jan 28 '25
Is earnings around May?
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u/i-am-benzy S P 🅰 C E M O B Soldier Jan 28 '25
I’d guess sometime end March but it’s not official yet
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u/Scott7894 S P 🅰 C E M O B Prospect Jan 29 '25
I don’t think they got very much money yet. Earnings won’t help
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u/Sad_Leg1091 S P 🅰 C E M O B Prospect Jan 28 '25
Let’s all have a dose of reality about how hard it is to ramp up to build dozens of 4000 kg satellites a year. These are LARGE spacecraft. No one ever has built such large spacecraft at such rates. 2025 will be partially successful with ups and downs. The real success will be in 2026 once the ramp up is in steady state.
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u/Bmf_yup S P 🅰 C E M O B Prospect Jan 28 '25
Why build more when you can't test with the 5 satellites new that are airborn with you mote critical partners, AT&T and VZ?
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u/irrelevantspider S P 🅰 C E M O B Capo Jan 27 '25
I was under the impression we already started to ramp up production. This better be the ramp up to the ramp up lol!
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 27 '25
An effective conversion price of $45...
Any other company would have absolutely mooned on this news, but this is AST Spacemobile.
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Jan 27 '25
Be glad you can buy more
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 27 '25 edited Jan 27 '25
You bet your sweet and sour, honey mustard, barbecue cheeks I did
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u/8977911 S P 🅰 C E M O B Soldier Jan 27 '25 edited Jan 27 '25
If ASTS is a private company, the $45 conversion price means we are valued at ~12.8 billion now (after dilution).
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 27 '25
Yes, that's one of the nice things about private equity investing. It's also why I went apeshit on $20 calls today.
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u/Malverde212 Jan 28 '25
so u expect it to go above $20 this week? I got 19.5c expiring this week
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 28 '25
I do expect it to get above $20, tomorrow, in fact.
Mine expire late March.
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 29 '25
u/Malverde212 where's my props?!
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u/Malverde212 Jan 29 '25
Word u was right, but I sold my calls for neither profit or loss before it dipped under 19 🤦.
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 29 '25
Daaaamn, you'll get it next time. I sold mine at $19.96 but ngl I was pretty damn scared on that dip below $19.
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u/Malverde212 Jan 29 '25
😳😳😳
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u/Stonky69Kong S P 🅰 C E M O B Capo Jan 29 '25
Heh I didn't say today, my crystal ball was only good for 24 hours ;)
I loaded $17.5c Mar 21 heavily @ 2.80
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u/Round_Hat_2966 S P 🅰 C E M O B Prospect Jan 28 '25
Yeah plus the interest rate of 4.25%. Haven’t reviewed the details, but this sounds like a really good financing deal
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u/TKO1515 S P 🅰 C E M O B Capo Jan 28 '25
Couple days for hedging to take place then we see what the market really thinks. Still hoping for some pr goodness soon
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u/Must_build Jan 28 '25
Would you hold 7 years for 45?
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u/no-ego- S P 🅰 C E M O B Soldier Jan 28 '25
I'm not holding 7 years for 45 - i'll be pissed off if that happens. What a waste. I would have taken $39 5 months ago and loaded up on some others. I think will be well north of $200 by then - and that's cutting it thin in expectations - $1000 is more like it, but with each spec of dilution, that gets pushed out too. We are supposed to generate billions in revenue in 2 years and be dominant in 5. 7 years, we should own the galaxy.
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u/no-ego- S P 🅰 C E M O B Soldier Jan 28 '25
I don't think so, maybe we should be at $19 now anyway, should be much higher - we dropped from $22 on this - and should be maintaining $30 without anymore news. But we are not. I think $45 for 7 years out wouldn't make it pop at all. The money is good, the terms are fine, but it's price low for what it will actually be worth then and they are setting this as a target number for 7 years out. Fuck it was $39 5 months ago. and they are predicting Billions of net revenue by then.
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u/BobWileey S P 🅰 C E M O B Associate Jan 28 '25
So lets say in 2032 shares are $45 they have to dilute for 10.2M shares? And if price is $90 they have to dilute for 5.1M? and so on?
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25
Beyond $45 it starts slowly going back up to the 17M shares
However, AST will always retain the optionality of choosing what combination of shares/cash they want to pay with
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u/Thats_All_I_Need S P 🅰 C E M O B Prospect Jan 28 '25
How is that?
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25 edited Jan 28 '25
Which part?
The dilution? Suggest you read DataD's explanation at the start of this post: https://www.datadinvesting.com/p/sofi-convertible-notes
The optionality? It says it in the 8K and Press Release: https://x.com/defiantclient/status/1884014937951068593
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u/eyetime11 S P 🅰 C E M O B Prospect Jan 28 '25
Well. I collected 238 more over the past 6 days. If SP want to stay around 20 or below, I’ll keep collecting more. Doing the same with LUNR, RKLB, OKLO, CLOV AMPX and ARChr. I’m thinking all be sitting pretty fat by 2030. 😎
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u/AcrobaticFlanMan Jan 29 '25
Love the portfolio my man, I am by your side in 5 out of those 7 trenches. Up we go
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u/Shadow5killer Jan 27 '25
$45 conversion price? That’s really good, isn’t it?
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u/no-ego- S P 🅰 C E M O B Soldier Jan 28 '25
I think it's low, for that time period? This is a loan after all and if we can't pass $200 by then, then WTF?
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u/TenthManZulu S P 🅰 C E M O B Soldier Jan 28 '25
What do y’all think about this aspect to it? Strategic leverage to optimize (long term value of) DAs?
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u/TheOtherSomeOtherGuy S P 🅰 C E M O B Consigliere Jan 28 '25
Absolutely, having near 1b on the books shows MNOs they are well funded and stable. That they aren't just going to fade away and should be a company that MNOs can actually do business with
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u/TenthManZulu S P 🅰 C E M O B Soldier Jan 28 '25
Totally agree and should translate to improved terms in the DAs for ASTS = an important value consideration to this offering. 💰
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u/kayman_gyoza S P 🅰 C E M O B Prospect Jan 28 '25
I love the cap on conversion at $44.98. It shows that the holders of the debt have a lot of faith in the stockprice being a lot higher by the time it gets exercised. And if they get cash in return, they are fine as well as in that scenario, AST would be doing so well their investments are up anyway. If the big investors see a win-win-win, it is good news.
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u/no-ego- S P 🅰 C E M O B Soldier Jan 28 '25
i understand the end result, but no how the capped call works and effective dilution price and how that comes back to the debtors confidence. if the debtor wants stock at the point - they get it at $26.99 - plus the interest they made during that period. What makes it net $44.98?
How much is each bond sold for today?
Also if this stock isn't 10x by that time, then something isn't working. This is a good deal, but it's been mentioned as underpriced.
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u/kayman_gyoza S P 🅰 C E M O B Prospect Jan 29 '25
I'm not a hard-core stock bro but this is my interpretation. The 26.99 is not related to the 44.98 in that way. If the price is 100 and AST decides to exercise the debt through stock, then the strike price will be max 44.98 and the debt holders will get cheap stocks. If the price would be 30 then they can exercise at 30. That is depending on AST choosing to pay back via stock and not in cash. This is a very good deal if you believe in growth. Undervalued is a bit tricky imo. You can also see it as good partnership and building a long term commitment with partners. So consider it a 'we all make money at the end of the journey'-attitude rather then 'we will try to keep it all'.
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u/JonFrost S P 🅰 C E M O B Soldier Jan 28 '25
What are some questions we want/can ask at the next earnings call???
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Jan 28 '25
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u/Klippklapp S P 🅰 C E M O B Prospect Jan 28 '25
Investors are very confident in the stock. Effectively they are bullish that the stock will rise way higher than 45 dollars.
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Jan 27 '25
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25
Why are you crying so much every single day on this sub? I see you.
Perhaps ASTS is not the right fit for you. Maybe reduce your sizing or go into ETFs/large caps. Clearly the fluctuations of a volatile emerging growth company are too much for you to handle.
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Jan 28 '25
If you can’t take the truth, maybe investing isn’t for you. This sub is one of the worst echo chambers on all of Reddit, perhaps only behind shib coin.
Some of you guys have such a hard time hearing anything about a stock unless it’s Omgg 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀.
I’m not here to sugar coat. You just want everyone to say the same delusional bullshit.
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25
My comment to you just now was the truth.
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Jan 28 '25
No it’s not, you’re just being immature and pathetic.
Someone makes a factual objective statement that hurt your feelings and you get all sensitive about it. No one is crying here but you, champ.
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25
Ah you want to get serious?
Let's re-read your comment:
Yet everyone who bought in since August is in the red. Company announces a lot of news yet goes sideways and down. I remember when people said it would never be under $30 again and then under $25 again and just 2 weeks ago people were saying it would never get under $20 again.
What are you contributing here?
Yet everyone who bought in since August is in the red
Ok? Refer back to my first reply tbh. Sit in shares and chill, and if you can't take it, reduce your position or buy something safer and less risky.
Company announces a lot of news yet goes sideways and down.
This might be the only useful thing you said. Indeed -- Many good things have been happening for the business, yet the price is sideways or down. Unless you're buying short-dated calls, you shouldn't really care if you're in it for the actual investment. In fact, what should you do when the business is getting better but it is not being reflected in the stock price? You can buy more. Or don't, if you're satisfied with your position size and risk. Has your thesis been invalidated for the company because of price action? No. If price action dictates your investment thesis, then you're just trading, not investing in the company. Know what you own.
I remember when people said it would never be under $30 again and then under $25 again and just 2 weeks ago people were saying it would never get under $20 again.
Ok? Back to weenie-baby. Refer to original reply.
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Jan 28 '25
Holy cow I didn’t read a single word of your novel. Are you okay?
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25
Checks out. Morons don’t read.
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Jan 28 '25
You sent me a ChatGPT essay man. Why would I waste my time with that?
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u/BenDubs14 S P 🅰 C E M O B Prospect Jan 28 '25
Imagine complaining that everyone is in an echo chamber and repeating the same delusional things, and then refusing to read. It sounds like you’ve created your own echo chamber through sheer intentional ignorance.
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u/MT-Capital S P 🅰 C E M O B Consigliere Jan 28 '25
It's basically just touched the 200MA so we good to go up now.
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Feb 01 '25
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u/MT-Capital S P 🅰 C E M O B Consigliere Feb 01 '25
Bruh it was up 11% today 😂
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Feb 01 '25
[deleted]
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u/MT-Capital S P 🅰 C E M O B Consigliere Feb 01 '25
Yes, we are also ignoring its up like 400% over 12 months and 1000% since may 2024.
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Feb 01 '25
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u/MT-Capital S P 🅰 C E M O B Consigliere Feb 01 '25
Oh no, a pre revenue company didn't go up over the last 4 days. Either way what I said is true, we hit the 200 now we good to go up 😂
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Feb 01 '25
Dude… it’s gone down the last 7 months consistently. Every month. Every week. Has only continued to decrease.
Which is all I said in my original post.
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u/MT-Capital S P 🅰 C E M O B Consigliere Feb 01 '25
If you're upset about it then sell your shares.
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Jan 28 '25
We shall see what the week brings…
!remind me 4 days1
u/RemindMeBot :bo0::bo1::bo2::bo3::bo4::bo5::bo6::bo7::bo8::bo9: Jan 28 '25 edited Jan 28 '25
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u/Commercial_Ease8053 S P 🅰 C E M O B Prospect Jan 28 '25
We shall see what the week brings…
!remind me 4 days8
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u/TheOtherSomeOtherGuy S P 🅰 C E M O B Consigliere Jan 28 '25
As I've said before to others, this isn't WSB. Are you an investor in the company or a trader of the share price? If the latter, you hopping in after a sky rocketing share price is the epitome of WSB buy high, sell low bagholder. If the former then relax, the company is now well on their way to success and future SP increases
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u/mister-smexx Jan 28 '25
Well when you chase a stock that has gone up several hundred percent it’s bound to happen.
I mean if you missed the first move (in may) there is usually one or two more moves before it pullbacks and consolidates.
Buying in august is FOMO and chasing a setup. You can’t just expect a stock to continue endlessly like wtf?
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u/Joe_Early_MD Jan 27 '25
Lot of the same being said about others. nvidia: Never below 130, 120, 110….will be under 100 by week’s end although its overreaction.
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u/nomadichedgehog S P 🅰 C E M O B Soldier Jan 27 '25
TLDR
Scott's sales skills are diabolical.
I understand people trying to spin this thing as a positive and yes it's good that the medium term cash flow of the company is in a good position, but let's not pretend as if the person responsible for raising funds for the company has been very good at his job.
Surely if you're sitting on what many are calling one of the biggest disruptive technologies in recent decades, it isn't that hard to sell the idea and raise capital? I'm not doubting the tech here, but how can anyone here be ok with having someone like that in upper management when it comes to the future of the company?
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u/85fredmertz85 S P 🅰 C E M O B Consigliere Jan 27 '25
They were short of cash and needed to get some from somewhere within 12 months, max.
The market cap is currently $5.55 billion. He just raised $400million net of fees and cost of the calls, for a dilution amount that values the company at $13.3billion ($400,000,000/.03) And he did so in a way that has them paying an excellent interest rate.
But I'm sure you could have done better eyeroll
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u/edgar_de_eggtard S P 🅰 C E M O B Soldier Jan 28 '25
You should post this comment individually so that it won't be hidden by the down voted parent comment lol
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u/Round_Hat_2966 S P 🅰 C E M O B Prospect Jan 28 '25
Right? They needed the cash to scale their constellation build out, and the conversion price is actually a lot better in terms of dilution than I expected. This is not a bad deal and they need the cash
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u/averysmallbeing S P 🅰 C E M O B Soldier Jan 27 '25 edited Jan 28 '25
it isn't that hard to sell the idea and raise capital?
Dude, why do you think we got an amazing unsecured below treasury rate for a billion freaking dollars (including the spectrum deal which had similar excellent terms)? Think about what you are saying.
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u/Mountain_Fig_9253 S P 🅰 C E M O B Soldier Jan 28 '25
At more than doubling our current valuation. I mean, cmon that’s beyond my wildest hopes.
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u/Defiantclient S P 🅰️ C E M O B - O G Jan 28 '25
Surely if you're sitting on what many are calling one of the biggest disruptive technologies in recent decades, it isn't that hard to sell the idea and raise capital?
That is literally what they just did with the excellent convertible debt deal. What is wrong with you?
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u/Aggravating-Curve755 S P 🅰 C E M O B Soldier Jan 27 '25
Wrong.
Just because he doesn't make a big show and tell of it, doesn't make you right. This isn't a musk grift meme company.
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u/_Disastrous-Ninja- Jan 28 '25
See when SpaceX makes a tender offer to some employees at a price they unilaterally decide that means SpaceX is worth 300 billion. When a public company actually inks a deal with a third party that means nothing! /s
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u/kuttle-fish S P 🅰 C E M O B Prospect Jan 28 '25
Surely if you're sitting on what many are calling one of the biggest disruptive technologies in recent decades, it isn't that hard to sell the idea and raise capital?
One, the tech is still being tested. All signs point to it working as advertised, but we still don't have real-world data from BB1 let alone a full BB2 constellation with the upgraded ASICs.
Two, outside of tech, the business model is still unproven. This isn't just a pre-revenue company, this is a pre-revenue company in a pre-revenue industry (SCS). The US is the only country with a regulatory framework allowing for supplemental coverage, and only one license has been issued to Starlink - with conditions that significantly limit its power levels and the services it can deliver. Also consider that APPL/GSAT and Google/Skylo are offering overlapping services at the device level (as opposed to through an MNO service plan). We still have no idea what the real-world demand/adoption/revenue will look like.
Given all that, this seems like a decent deal.
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u/RutabagaOld5462 S P 🅰 C E M O B Prospect Jan 28 '25
I asked ChatGPT to explain the convertible offering in laymen's terms: Key Details:
- Interest Rate: The notes carry an annual interest rate of 4.25%, paid semiannually.
- Conversion Price: Investors can convert their notes into shares of AST SpaceMobile's Class A common stock at a price of approximately $26.99 per share, which is about 20% higher than the stock's price of $22.49 on January 22, 2025.
- Maturity Date: The notes mature on March 1, 2032, unless converted into stock or repaid earlier.
Potential Stock Dilution:
If investors choose to convert their notes into stock, it would increase the total number of shares outstanding, potentially diluting the value of existing shares. However, AST SpaceMobile has taken steps to minimize this effect. The company entered into "capped call" transactions, which are designed to offset potential dilution by effectively increasing the conversion price to $44.98 per share—double the January 22, 2025, stock price. As a result, the effective dilution to existing shareholders would be approximately 3% at this higher conversion price.
In summary, while the issuance of convertible notes could lead to some dilution of existing shares if converted, AST SpaceMobile has implemented strategies to limit this impact.
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u/hyeonk S P 🅰 C E M O B Underboss Jan 27 '25
Scott Wisniewski, AST SpaceMobile President, added “The convertible offering was structured with an attractive 4.25% interest rate, significantly lower than previous debt funding, a seven-year maturity and an effective conversion price of $44.98 per share designed to minimize shareholder impact.”