New Providence Acquisition (NASDAQ:NPA) stock is soaring higher on Thursday as the special purpose acquisition company (SPAC) prepares for its merger with AST SpaceMobile.
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There’s no direct news today that has NPA stock on the rise. However, talk of a Space Exploration ETF in the works from Ark Invest has shares of space-related stocks taking off today. That also includes Stable Road Acquisition (NASDAQ:
SRAC), which is preparing for its SPAC merger with Momentus.
Now that investors are up to date, let’s take a dive into New Providence Acquisition and its .
- New Providence Acquisition and AST SpaceMobile are preparing to complete their SPAC merger in Q1 2021.
- The deal values the combined company at $1.4 billion and will provide it with $462 million in gross proceeds.
- $232 million of this comes from cash held by New Providence Acquisition.
- The remaining $230 million is from private investment in public equity (PIPE).
- New Providence Acquisition raised $230 million from its initial public offering (IPO) back in 2019.
- The company’s goal when going public was to find a target for a SPAC merger.
- AST SpaceMobile seeks to set up a new mobile network in space.
- It claims that this will allow it to offer wireless coverage to customers without there being any gaps in the service.
- Investors in the company include Vodafone (NASDAQ:VOD), Rakuten (OTCMKTS:RKUNY), American Tower (NYSE:AMT), and Cisneros.
- These investors will increase their equity in AST SpaceMobile via the PIPE.
NPA stock was up 12% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
