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AST SpaceMobile Shares Drop 5% After $1 Billion Capital Raise Announcement
AST SpaceMobile Shares Drop 5% After $1 Billion Capital Raise Announcement
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BTCCSquare news:
AST SpaceMobile's stock fell 5.07% to $78.61 following the announcement of a $1 billion convertible notes offering and direct share placement. The satellite communications firm upsized its private offering from $850 million due to strong institutional demand, pricing the 2036-maturity notes at a 22.5% conversion premium.
The capital injection fuels the company's ambitious space-based broadband plans but triggered immediate market concerns about dilution. Convertible notes carry a 2% coupon and allow conversion at $96.30 per share, significantly above current trading levels. This financing MOVE underscores the costly nature of satellite infrastructure deployment while testing investor patience for long-term space ventures.
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