AST SpaceMobile (NASDAQ:ASTS) shares are down nearly 22% at the time of writing today after the space-based cellular broadband network operator announced an upsized offering of its Class A common shares.
ASTS had earlier announced an offering of 12 million shares but has now increased the size to 12.5 million shares. The underwritten public offering is expected to fetch $59.4 million in gross proceeds for the company. ASTS plans to use the funds for general corporate purposes such as payments for launch services as well as additional equipment.
The offer is anticipated to close on June 30 and the underwriter has also been granted a 30-day option to snap up an additional 1.875 million ASTS shares.
The development comes after last week, ASTS achieved a major milestone with its BlueWalker 3 satellite delivering download speeds of more than 10 Mbps to mobile phones.
Today’s price erosion comes after a nearly 18.3% rise in ASTS shares over the past month. Short interest in the stock currently stands at a massive 23.7%.
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