Why AST SpaceMobile Stock Is Plummeting This Week
Shares of AST SpaceMobile (NASDAQ: ASTS) are sinking this week following news that the company is selling new stock. The telecom specialist's stock was down 31.7% from last week's market close prior to the market opening today, according to data from S&P Global Market Intelligence.
AST published press releases after the market closed on June 27 announcing that it would be selling 12.5 million shares of company stock in a deal that would raise $59.4 million. In addition to diluting existing shareholders, the new stock sale was set at a price that was actually significantly below where the company was trading prior to the announcement.
AST SpaceMobile stock ended Tuesday's daily trading session priced at $6.37 per share, but shares crashed following news of the upcoming stock offering. Per the deal, the company will be selling 12.5 million shares at roughly $4.75 per share -- far below where the stock was trading before the new offering was announced.
Source Fool.com
