BUZZ-AST SpaceMobile tumbles after announcing convertible offering, preliminary results

AST SpaceMobile's ASTS.O shares down 12.2% to $19.75 post-market as satellite communication firm seeks capital raise and releases preliminary results

Midland, Texas-based co says offering privately $400 mln convertible bonds due 2032

Co plans to use portion of net proceeds to pay for capped calls, remainder for working capital, or other purposes, including strategic transactions

Also, co says as of Dec 31, 2024 it had cash and restricted cash of approx $567.5 mln vs $88.1 mln in 2023, and expects for three months ended Dec 31 total operating expenses of $58.3-$62.3 mln

ASTS shares on Weds closed down 2.6% at $22.49, giving co about $6.5 bln market cap, per LSEG

In Nov, Jeff Bezos' rocket firm Blue Origin inked multi-launch deal with ASTS to deploy co's direct-to-cellular satellites "over a multi-year period" using Blue's New Glenn rocket

ASTS shares up 6.6% YTD after soaring 250% in 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))