AST SpaceMobile, Inc. has announced a significant agreement for long-term access to up to 45 MHz of lower mid-band spectrum in the United States for direct-to-device satellite applications. This agreement is set to enhance AST SpaceMobile's planned space-based cellular broadband offering, providing access to a large block of scarce resources.
The binding restructuring support agreement among Ligado Networks and AST SpaceMobile will grant AST SpaceMobile long-term spectrum usage rights for 80+ years to up to 40 MHz of L-band MSS spectrum in the United States and Canada, along with access to an additional 5 MHz in the 1670-1675 MHz band in the United States.
Upon execution of the definitive documentation, Ligado will receive approximately 4.7 million penny warrants convertible into AST SpaceMobile class A shares, subject to a 12-month lock-up. Additionally, upon closing of the transaction, Ligado will receive additional consideration of approximately $550 million. To support this consideration, AST SpaceMobile has received a $550 million institutional financing commitment.
In September 2024, AST SpaceMobile launched its first five commercial bluebird satellites into low earth orbit, each reaching approximately 700 square feet in size. These initial satellites will offer non-continuous cellular broadband service across the United States and in select markets globally, targeting approximately 100% nationwide coverage from space. The company also secured additional strategic investment from AT&T, Verizon, Google, and Vodafone during 2024, and has agreements with over 45 mobile network operators globally.
As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $24.2. For more information, read the company's full 8-K submission here.
