AST SpaceMobile Inc. saw its stock decline by 3.2% as of 10:10 a.m. ET on Tuesday following unsettling developments from the U.S. Securities and Exchange Commission (SEC). According to three stock filings submitted on Monday, certain shareholders of AST SpaceMobile intend to sell a minimum of 60,296 shares, with the potential to sell up to 56.1 million shares.
The relevant SEC filings, available on the EDGAR website, include the following:
1. A Form S-3 registration statement indicates that, periodically and as part of the Rakuten Reorganization, certain Selling Stockholders plan to resell 56.1 million shares of AST.
2. A Form 144 notice of proposed sale states that AST’s Chief Operating Officer, Shanti Gupta, plans to sell 24,425 shares obtained six months prior through restricted stock vesting.
3. A second Form 144 indicates that AST’s President, Scott Wisniewski, will sell 35,871 shares that were also acquired six months ago as restricted stock vested.
While the sales by Gupta and Wisniewski are seen as routine conversions of noncash compensation to cash, the S-3 filing raises concerns. Shareholders, including AT&T Venture Investments, Google LLC (an affiliate of Alphabet), and Verizon Ventures, intend to liquidate their entire holdings in AST. Among the major investors, only Vodafone plans to maintain a stake in the company.
Investors have previously viewed AST’s partnerships with major industry players as a positive indicator of support for the company’s satellite communications technology. However, the potential liquidation of holdings by AT&T and Verizon, two significant U.S. backers, raises questions about the actual level of confidence in AST SpaceMobile’s prospects.
