ASTS Stock Slides Overnight: CEO-Linked Entity Files To Sell Shares Worth Nearly $183M

• AA Gables 2, LLC filed to sell 2.5 million ASTS Class A shares, with Citigroup Global Markets listed as broker.
• The shares are being introduced under a pre-paid forward contract with Citibank, which may be physically or cash settled.
• AA Gables 2 pledged 2.5 million AST & Science units, redeemable or exchangeable into ASTS Class A shares, to secure the contract.

Shares of AST SpaceMobile (ASTS) slid 6% overnight heading into Tuesday after a CEO-linked entity filed a proposed sale of shares valued at nearly $183 million, raising fresh dilution concerns just days after the company’s latest BlueBird satellite launch.

ASTS stock slumped 9% on Monday, recording its second consecutive session of losses. 

CEO-Linked Entity Files ASTS Share Sale Notice 

A fresh filing from Monday showed that AA Gables 2, LLC filed a notice for the proposed sale of 2.5 million AST SpaceMobile Class A common shares, with an aggregate market value of about $183 million. Citigroup Global Markets was listed as the broker. The filing also said there were no securities sold by AA Gables 2 during the past three months.

The key detail for investors: Abel Avellan, AST SpaceMobile’s founder, chairman and CEO, is the sole member and managing member of AA Gables 2.

The filing said the shares are being introduced into the market under a pre-paid forward contract between AA Gables 2 and Citibank, an affiliate of Citigroup Global Markets. The contract may be physically or cash settled. To secure its obligations, AA Gables 2 pledged 2.5 million common units of AST & Science, LLC, which are redeemable or exchangeable into AST SpaceMobile Class A common shares. The units were acquired as a capital contribution from Avellan.

BlueBird 11, 12 And 13 Set For Next Launch 

The proposed sale notice comes a week after AST SpaceMobile announced the successful launch of its BlueBird 8, 9 and 10 satellites from Cape Canaveral Space Force Station aboard a Falcon 9 rocket.  

BlueBirds 8, 9 and 10 measure about 2,400 square feet and are the largest commercial communications arrays ever deployed in low Earth orbit, according to AST SpaceMobile. The company said that the satellites can deliver nearly double the peak data speeds of its initial Block 1 BlueBird satellites, which recently hit peak download speeds of 98.9 Mbps directly to standard smartphones.

“BlueBirds 8, 9, and 10 represent the continued execution of a vision once considered impossible: space-based cellular broadband to everyone, everywhere,” Avellan said. He also said, “This first stacked launch is just the beginning,” adding that BlueBirds 11, 12 and 13 will ship shortly for the next launch, while next-generation BlueBird satellites through BlueBird 37 are already in active production and assembly.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS was ‘neutral’ amid a 521% surge in 24-hour message volumes.

One user dismissed the latest development and said, “This is largely an administrative settlement of a financing transaction disclosed long ago.”

Another user said, “Bought calls today. Seemed like a nice day to buy some calls.”

ASTS stock has jumped 59% over the past year. 

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