Space-Based Internet Start-Up AST To Go Public Via SPAC Deal By Lou Whiteman
12/17/20 AT 1:25 AM
AST & Science, a company trying to deliver broadband-speed internet to smartphones without any additional equipment, is jumping on the SPAC train, agreeing to a deal with special purpose acquisition company New Providence Acquisition (NASDAQ:NPA) that would take the company public.
AST is developing a constellation of satellites it calls SpaceMobile that it says will allow terrestrial phones to access 5G broadband speeds. There are a number of existing services that offer high-speed internet from space, including Iridium and SpaceX s Starlink service, but all existing options require special satellite phones or expensive base stations to access the networks.
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WeissLaw is investigating whether NPA s board acted in the best interest of NPA s public shareholders in agreeing to the proposed transaction, whether the board was fully informed as to the valuation of AST, and whether all information regarding the process undertaken by the board and the valuation of the transaction will be fully and fairly disclosed to NPA public shareholders.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, pleas
Photo: AST SpaceMobile
AST SpaceMobile rolled out two major announcements on Wednesday the company is planning to go public through a special purpose acquisition company (SPAC), and plans to launch the first phase of a space-based commercial mobile communications service with
Vodafone Group in 2023.
New Providence Acquisition Corp., a publicly traded special purpose acquisition company, has agreed to combine with AST SpaceMobile at an estimated $1.4 billion pro forma enterprise value, or 1.4 times calendar year 2024’s estimated EBITDA of approximately $1 billion. The transaction is expected to provide up to $462 million in gross proceeds, between New Providence Acquisition Corp.’s $232 million of cash held in trust and a $230 million fully committed common stock private placement investment (PIPE) led by
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Another space-related SPAC deal was announced Wednesday morning, with space mobility company AST & Science LLC announcing a merger.
The SPAC Deal: AST announced it s merging with
New Providence Acquisition Corp (NASDAQ: NPA).
The deal is being done at a post-transaction enterprise valuation of $1.4 billion. Investors in the PIPE include Rakuten,
Vodafone Group (NASDAQ: VOD), Samsung,
American Tower Corporation (NYSE: AMT) and
UBS Group (NYSE: UBS).
The merger is expected to close in the first quarter of 2021, with shares trading under the new ticker ASTS on the Nasdaq.
Existing shareholders of New Providence Acquisition will own 16% of the company. AST founder Abel Avellan will own 43% of the new company.
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