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Update from AST SpaceMobile (NASDAQ:ASTS) 📣
Further progress towards commercializing the systems ✔️
A huge deal that will upgrade the world of space communication! 🌍
AST SpaceMobile, the company poised to bring satellite communication directly to mobile devices, has made another move towards changing the market's rules.
The company announced a series of strategic agreements with Ligado Networks, and even Ligado's bankruptcy earlier this year did not stop this move.
🌐 Here are the full details of the deal, and it's bigger than you thought:
1️⃣ Access to critical spectrum: AST SpaceMobile gains long-term access to 45 MHz of low mid-band spectrum in the US and Canada, exactly what is needed to accelerate satellite communication services directly to mobile devices. This is a significant infrastructure upgrade that will strengthen network coverage and speed.
2️⃣ The price? Big money on the table: $350 million upfront cash payment, an additional $200 million (cash or debt conversion option), and a minimum annual payment of $80 million to Ligado, with potential bonuses based on revenue sharing from spectrum usage.
Additional payment in stock options at a ridiculous price: AST SpaceMobile granted 4.7 million options for Class A shares at a price of just $0.01 per share, but with a 12-month lock-up.
3️⃣ More spectrum, more power: In addition to the main agreement, ASTS signed a deal with One Dot Six LLC, which will provide it with additional access to spectrum for ground-to-space use, with an option to acquire the rights in the future.
4️⃣ Strong backing behind the scenes: The company also signed a side agreement with Cerberus Capital Management and Fortress Credit Advisors, two major financial entities, who will receive observer status on the board and be part of network and spectrum planning.
This deal is nothing short of a strategic leap forward. The combination of access to mid-band spectrum along with existing low-band capabilities will create a powerful, faster, and more efficient network infrastructure, exactly what is needed to compete with giants like SpaceX's Starlink.
Furthermore, ASTS strengthens its position in the American and Canadian markets, precisely when the world craves stable and robust communication solutions, especially in isolated and hard-to-reach areas.
The deal still needs court approval (due to Ligado's bankruptcy), but if it goes through, ASTS could surge forward at dizzying speed.
AST SpaceMobile is once again positioning itself strongly to be the global leader in direct-to-device satellite communication services, a move that could change the market completely.
Now that we've summarized the update, we have a few questions you should ask yourselves 🤨
1. Can ASTS meet the challenge and operate satellite communication for billions of customers worldwide?
2. If so, who will compete with it, and does it have an advantage over competitors?
3. If you believe the answers to both these questions are positive, what is the appropriate market cap for this company?
Bottom line, are you interested in a review post about the company?
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