Why Shares of AST SpaceMobile Collapsed 25% This Week
The upstart satellite internet stock is raising capital amid headwinds from the unwind of the space-economy theme.
Overview
Shares of AST SpaceMobile (NASDAQ: ASTS) have collapsed 25% this week, according to data from S&P Global Market Intelligence. The potentially disruptive direct-to-device satellite internet provider is raising $1 billion in funding through convertible notes, sending the stock sinking.
AST SpaceMobile stock is now down 59% from highs set less than two months ago. Here's why.
Details
On July 15, AST SpaceMobile finalized a surprise $1 billion convertible bond capital raise. These are bonds that can be converted to stock above a certain share price; the specific terms of this deal call for the debt to expire in 2034 at an annual interest rate of 1.6% and a conversion price of $79.60. AST SpaceMobile currently trades at around $55 a share.
Source
Originally published at www.fool.com.