AST SpaceMobile is raising capital through a private offering of convertible notes and a direct offering of common stock, potentially leading to stock dilution. The company formed a joint venture with Vodafone for space-based broadband in Europe by 2026. Shares are down 10%, announcing a $500 million private offering and $135 million direct offering to repurchase existing notes. Despite mitigating dilution, some is expected.

AST SpaceMobile partnered with Vodafone to establish SatCo for European space-based broadband by 2026. The company seeks to raise $500 million through convertible notes due in 2032, with an option for an additional $75 million, and a direct offering of common stock for $135 million. Stock offerings are necessary due to the high capital costs of satellite networks.

AST SpaceMobile faces competition from well-capitalized players like Starlink. Investors with high risk tolerance may find potential in AST but must consider its challenges. The Motley Fool did not list AST among the top 10 stocks for investors, highlighting the company’s uphill battle against industry giants. Stock Advisor’s returns have significantly outperformed the S&P 500.

Read more at Yahoo Finance: Why AST SpaceMobile Stock Is Plummeting Today