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AST SpaceMobile Provides Interim Business Update to Confirm Upcoming Orbital Launch and Warrant Redemption

September 04, 2024

AST SpaceMobile, Inc. 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.

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.