AST SpaceMobile Inc (NASDAQ:ASTS) shares are tumbling in Thursday’s after-hours session after the company announced a proposed private offering.
Check out the current price of ASTS stock here.
What Happened: AST SpaceMobile said it intends to offer $500 million of convertible senior notes due 2032 in a private offering to institutional investors. The company plans to grant the initial purchasers a 13-day option to purchase up to an additional $75 million of the notes.
AST SpaceMobile intends to use the net proceeds to pay the cost of the capped call transactions in connection with the offering, as well as for general corporate purposes.
AST SpaceMobile also announced a concurrent cash repurchase of up to $135 million worth of its 4.25% convertible senior notes due 2032. Last month, the company announced a $225 million repurchase of the same notes in privately negotiated repurchase transactions with a limited number of holders.
AST SpaceMobile had a total of $874.5 million in cash, cash equivalents and restricted cash as of March 31. The company is due to report second-quarter financial results next month, per Benzinga Pro.
How To Buy ASTS Stock
By now, you're likely curious about how to participate in the market for AST SpaceMobile — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.
ASTS Price Action: AST SpaceMobile shares were down 9.44% in after-hours, trading at $54.39 at the time of publication on Thursday, according to Benzinga Pro.
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