AST SpaceMobile secures $155 million in strategic investment from AT&T, Google, Vodafone and ET Telecom

New Delhi: AST SpaceMobile has secured a $155 million strategic investment from AT&T, Google, and existing investor Vodafone to support the startup’s commercial deployment of its space-based cellular network.

In addition to a $155 million strategic investment, AST SpaceMobile plans to draw up to $51.5 million from its existing senior secured credit facility for a total of up to $206.5 million in new financing. The company announced Friday.

The investment includes $110 million in 10-year subordinated convertible notes (5.50% interest rate) invested by AT&T, Google and Vodafone, with a conversion price of $5.75 per share (as of January 16). (39% premium to closing price). Based on the successful launch and initial operations of his first five commercial satellites, he received a $20 million revenue commitment from AT&T. Subject to a final agreement, the minimum revenue commitment from Vodafone will be $25 million, according to the statement.

In addition to strategic investments, new investors have expanded strategic and commercial relationships to help build the SpaceMobile network.

Vodafone and AT&T have ordered networking equipment from AST SpaceMobile for an undisclosed amount to support planned commercial services, and Google and startups will continue to develop products for network connectivity on Android and related devices. We agreed to cooperate on testing and implementation plans.

“Our vision for AST SpaceMobile has always been to chart a trajectory of collaborative innovation and integration with the world’s leading wireless companies, so we welcome this new strategic investment from AT&T, Google and Vodafone. I’m very excited about what we can do,” said Abel Abellan. , Chairman and CEO of AST SpaceMobile.

This investment comes alongside previous investments by other carriers including Rakuten, American Tower and Bell Canada. Both of these companies are part owners and serve as technology partners and customers of AST SpaceMobile.

“As we continue to advance first-of-its-kind innovations and work together to achieve our shared vision of space-based connectivity for consumers, businesses, and first responders around the world, We are excited to deepen our relationship with this investment,” said Chris Sambar, AT&T’s Executive Vice President and Head of Networks.

“Vodafone’s investment and collaboration with AST SpaceMobile will enable customers in Europe and Africa to take advantage of our mobile connectivity services everywhere.” said Margherita della Valle, CEO of Vodafone Group. I am.