- September 12th target launch date confirmed
for BlueBird satellites, each the largest communications array ever
deployed in low Earth orbit
- Over $440.0 million in pro forma cash and
cash equivalents as of June 30th, 2024, including over $155.0
million in expected warrant exchange proceeds
AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the
company building the first and only space-based cellular broadband
network accessible directly by everyday smartphones designed for
both commercial and government use, today provided an interim
business update. The launch of AST SpaceMobile’s upcoming
satellites is targeted on or after September 12th from Cape
Canaveral, Florida and over $155.0 million in proceeds is expected
from its previously-announced redemption of warrants, resulting in
over $440.0 million in cash on a pro forma basis as of June 30,
2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240904664593/en/
AST SpaceMobile BlueBird 1-5 Launch
Announcement
Orbital Launch Update
The first five commercial satellites, called BlueBirds, each
featuring the largest ever commercial communications arrays to be
deployed in low Earth orbit, represent a significant milestone in
AST SpaceMobile’s mission to bridge the digital divide and provide
reliable cellular broadband service to billions worldwide.
This large array of antennas is designed to reach standard
smartphones directly at cellular broadband speeds for voice, data
and video and other non-communications government applications.
After launch, the BlueBird satellites are planned to offer
non-continuous cellular broadband service across the United States
and in select markets globally. This initial service, based on
premium low band spectrum, is planned to support beta test users
for AT&T and Verizon, and will target approximately 100%
nationwide coverage from space with over 5,600 coverage cells in
the United States.
“This is a pivotal moment for AST SpaceMobile as we bring our
vision to enhance cellular connectivity globally, with the support
of our strategic partners and the unwavering commitment of our
team,” said Abel Avellan, Founder, Chairman, and CEO of AST
SpaceMobile. “As we shift our manufacturing focus to increase Block
2 production of the active payload systems and other components for
the first 17 Block 2 satellites, we are excited to bring this
revolutionary technology to the world. We believe space-based
broadband cellular connectivity will revolutionize how people
connect, empowering communities and driving economic growth on a
global scale.”
The exact timing of orbital launch is subject to change based on
a number of factors, including launch readiness of the launch
provider, weather conditions, and other factors, many of which are
beyond our control.
Members of the public will be able to watch a live broadcast on
the launch day on AST SpaceMobile's YouTube channel.
Financial Update
The company has over $440.0 million in pro forma cash, cash
equivalents and restricted cash as of June 30, 2024. This includes
over $155.0 million in expected warrant exchange proceeds with
$71.0 million already received. We have additional liquidity of
$51.5 million in gross proceeds available to draw under the Senior
Secured Credit Facility, subject to certain conditions and
approvals.
In addition to supporting near-term operational initiatives,
these additional cash reserves are expected to support financial
efficiencies including the cash payment of interest under the
Subordinated Convertible Notes and early retirement of the Senior
Secured Credit Facility, minimizing cost and dilution. The company
continues to advance discussions with quasi-governmental sources of
non-dilutive capital, as well as discussions with additional
strategic partners, following the blueprint of commercial
prepayments alongside commercial agreements.
“We are committed to funding AST SpaceMobile's growth in a
judicious manner, at every step of the way cognizant of minimizing
cost and dilution, with a focus on commercial prepayments and
quasi-governmental sources of capital,” said Andrew Johnson, Chief
Financial and Legal Officer of AST SpaceMobile. “Our use of the
prior at-the-market facility is a great example of this discipline,
and we expect usage of a similar facility as a supplemental source
of capital. As we have previously indicated, we continue to have no
plans to raise capital in an underwritten public equity offering
through at least the end of 2024 and we believe we are sufficiently
capitalized to execute our near-term operational initiatives.”
AST SpaceMobile has more than 3,400 patents and patent-pending
claims for its technology and operates state-of-the-art, vertically
integrated manufacturing and testing facilities in Midland, Texas,
which collectively span 185,000 square feet.
During 2024, AST SpaceMobile has secured additional strategic
investments from AT&T, Verizon, Google and Vodafone, as well as
new contract awards with the United States Government through a
prime contractor. The company has agreements with more than 45
mobile network operators globally, which have over 2.8 billion
existing subscribers in total, including Vodafone Group, Rakuten
Mobile, AT&T, Verizon, Bell Canada, Orange, Telefonica, TIM,
Saudi Telecom Company, MTN, Zain KSA, Etisalat, Indosat Ooredoo
Hutchison, Telkomsel, Smart Communications, Globe Telecom,
Millicom, Smartfren, Telecom Argentina, Telstra, Africell, Liberty
Latin America and others. Rakuten, American Tower and Bell Canada
are also existing investors in AST SpaceMobile.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular
broadband network in space to operate directly with standard,
unmodified mobile devices based on our extensive IP and patent
portfolio, and designed for both commercial and government
applications. Our engineers and space scientists are on a mission
to eliminate the connectivity gaps faced by today’s five billion
mobile subscribers and finally bring broadband to the billions who
remain unconnected. For more information, follow AST SpaceMobile on
YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this
video for an overview of the SpaceMobile mission.
Forward-Looking Statements
This communication contains “forward-looking statements” that
are not historical facts, and involve risks and uncertainties that
could cause actual results of AST SpaceMobile to differ materially
from those expected and projected. These forward-looking statements
can be identified by the use of forward-looking terminology,
including the words “believes,” “estimates,” “anticipates,”
“expects,” “intends,” “plans,” “may,” “will,” “would,” “potential,”
“projects,” “predicts,” “continue,” or “should,” or, in each case,
their negative or other variations or comparable terminology.
These forward-looking statements involve significant risks and
uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside AST SpaceMobile’s control and are difficult to predict.
Factors that could cause such differences include, but are not
limited to: (i) expectations regarding AST SpaceMobile’s strategies
and future financial performance, including AST’s future business
plans or objectives, expected functionality of the SpaceMobile
Service, anticipated timing of the launch of the Block 1 BlueBird
satellites, anticipated demand and acceptance of mobile satellite
services, prospective performance and commercial opportunities and
competitors, the timing of obtaining regulatory approvals, ability
to finance its research and development activities, commercial
partnership acquisition and retention, products and services,
pricing, marketing plans, operating expenses, market trends,
revenues, liquidity, cash flows and uses of cash, capital
expenditures, and AST SpaceMobile’s ability to invest in growth
initiatives; (ii) the negotiation of definitive agreements with
mobile network operators relating to the SpaceMobile Service that
would supersede preliminary agreements and memoranda of
understanding and the ability to enter into commercial agreements
with other parties or government entities; (iii) the ability of AST
SpaceMobile to grow and manage growth profitably and retain its key
employees and AST SpaceMobile’s responses to actions of its
competitors and its ability to effectively compete; (iv) changes in
applicable laws or regulations; (v) the possibility that AST
SpaceMobile may be adversely affected by other economic, business,
and/or competitive factors; (vi) the outcome of any legal
proceedings that may be instituted against AST SpaceMobile; and
(vii) other risks and uncertainties indicated in the Company’s
filings with the Securities and Exchange Commission (SEC),
including those in the Risk Factors section of AST SpaceMobile’s
Form 10-K filed with the SEC on April 1, 2024.
AST SpaceMobile cautions that the foregoing list of factors is
not exclusive. AST SpaceMobile cautions readers not to place undue
reliance upon any forward-looking statements, which speak only as
of the date made. For information identifying important factors
that could cause actual results to differ materially from those
anticipated in the forward-looking statements, please refer to the
Risk Factors in AST SpaceMobile’s Form 10-K filed with the SEC on
April 1, 2024. AST SpaceMobile’s securities filings can be accessed
on the EDGAR section of the SEC’s website at www.sec.gov. Except as
expressly required by applicable securities law, AST SpaceMobile
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240904664593/en/
Investor Contact: Scott Wisniewski
investors@ast-science.com
Media Contact: Allison Eva Murphy Ryan 917-547-7289
AstSpaceMobile@allisonpr.com
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