An illustration of the SpaceMobile satellite constellation.
AST SpaceMobile
Shares in the satellite smartphone broadband company AST SpaceMobile started trading on the Nasdaq on Wednesday. The company was the first among the youngest space companies to close its SPAC deal.
AST SpaceMobile trades in previously shared shares under the ticker ASTS listed under the SPAC New Providence before the merger.
A SPAC – or Special Purpose Acquisition Company – is a shell company that aims to raise money through an IPO in order to acquire a private company and take it public.
The stock closed 1.8% at $ 11.81 per share on Wednesday after rising 7% in midday trading.
AST corporate headquarters and high volume manufacturing facility in Midland, Texas
AST & Science
AST SpaceMobile, based in Midland, Texas, is building a satellite network, also known as a constellation, that delivers broadband from space directly to consumer smartphones.
Existing satellite networks require additional physical devices to connect to the service, such as Iridiums mobile satellite phones or Starlink from SpaceX User terminals. However, the satellite communication market is increasingly crowded with new services of the like OneWeb, Telesat, and Lockheed Martins latest partnership with the space-based 5G startup Omnispace.
“We don’t see the other satellite [low Earth Orbit] Constellations like Starlink as a competitor. In fact, we think that’s a great thing as it cuts startup costs and makes the space more affordable for the masses, “AST chairman and CEO Abel Avellan told CNBC’s Morgan Brennan on Wednesday.
The company, which raised around $ 120 million in private capital prior to the SPAC deal, expects total proceeds from the merger of around $ 462 million. The new capital will finance the development of the company’s network. AST plans to launch the next BlueWalker 3 demonstration satellite later this year. Avellan said AST expects to announce launch contracts “soon” with several rocket companies to deliver its satellites into orbit.
“It’s a long-term opportunity … but it’s a very, very big opportunity in a very large addressable market,” Avellan said.
The conclusion of the AST contract is the first in a recent series of space SPACs. Including AST, Seven space companies have announced SPAC mergers in the past six months.
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This article originally appeared on www.cnbc.com
