AST SpaceMobile’s shares were sharply lower ahead of the bell Wednesday after the satellite company priced an upsized equity offering to raise roughly $59.4 million.
In premarket trading, the shares were 23% lower after ending Tuesday at $6.37, up 32% so far this year.
AST SpaceMobile late Tuesday said it agreed to sell 12.5 million of its class A shares in a public offering, 500,000 more shares than it had planed to sell.
The offering’s underwriter has been granted a 30-day option to buy up to an additional almost 1.9 million A shares, the company said.
AST SpaceMobile said the proceeds from the offering, which is expected to close on Friday, will be used for general corporate purposes, including expected cash payments related to launch services and related additional equipment and services in the third quarter.