Shares of AST SpaceMobile (NASDAQ: ASTS) were falling Thursday. The firm's stock is down 13.5% as of 2:00 p.m. ET, but it had lost as much as 16.4% earlier in the day. The move down came as the S 500 gained 0.2% and the Nasdaq Composite fell 0.2%.

Investors were unhappy with AST's proposal of a private offering.

The company announced late Wednesday that it intends to offer $400 million in convertible senior notes due by 2032. The space-based broadband and cellular provider needs to raise serious cash to continue its quest to fill low earth orbit with its satellites. Having successfully launched just five, the company must launch significantly more to achieve the level of coverage that will make it competitive. Each is expensive, as the company relies on other companies like Blue Origen to build them and actually get them into space.

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Source Fool.com