AST SpaceMobile Secures $100 Million in New Funding

AST SpaceMobile, which is constructing a satellite-based broadband network accessible to smartphones for both commercial and government purposes, announced the conclusion of a $100 million equipment financing agreement last week. The deal was led by Trinity Capital Inc. and is non-dilutive, meaning it does not dilute existing ownership stakes. The funds will predominantly be used to accelerate manufacturing and network deployment efforts in the upcoming years.

“This new non-dilutive financing enables AST SpaceMobile to continue its strong momentum,” said CFO Andrew Johnson. “This facility is the first of its kind for us and signifies our transition from research and development to large-scale manufacturing and deployment.”

The financing arrangement includes $25 million drawn at closing against previously purchased equipment, with the remaining amount available until 2031. It is secured using current and planned equipment, fitting into a more mature, long-term capital structure that could facilitate future debt financing.

AST SpaceMobile’s strategic progress includes securing spectrum rights through a settlement with Ligado Networks and Inmarsat/Viasat. The settlement grants the company long-term access to 40 MHz of L-band spectrum in the U.S. and Canada, along with an additional 5 MHz in the U.S. in the 1670-1675 MHz band. These bands have been traditionally used for satellite services.

Additionally, the company announced a collaboration with the U.S. National Science Foundation (NSF) aimed at minimizing interference with astronomical research by aligning ground-based optical, infrared, and radio astronomy observations.

This financing and spectrum rights mark significant milestones for AST SpaceMobile as it advances towards full-scale deployment of its satellite network, potentially transforming global broadband accessibility.

Telecompetitor