AST SpaceMobile (NASDAQ:ASTS) Chairman Enters into Forward Contract for Personal Financial Planning

On November 20, 2024, Abel Avellan, the Chairman and Chief Executive Officer of AST SpaceMobile, Inc., engaged in a financial transaction for personal financial planning. This transaction, entered into with an unaffiliated dealer through a wholly-owned special purpose vehicle (SPV) via a variable prepaid forward contract (Forward Contract), did not involve the sale of any shares of the Company’s Class A common stock owned by Mr. Avellan at that time and did not impact his voting and Board of Directors rights.

Representing about 3.2% of Mr. Avellan’s total holdings in the Company and less than 1% of the total outstanding shares of the Company’s Class A common stock as of November 12, 2024, the non-dilutive transaction signifies Mr. Avellan’s ongoing commitment to the company. He has indicated that he has no current plans to convert his Common Units or sell any shares of the Company’s Class A common stock, intending to remain a long-term shareholder.

The Forward Contract is set to settle on specified dates in January 2026 based on the price of the Company’s Class A common stock relative to the forward floor price of $18.24 per share and the cap price of $34.20 per share. The total number of shares to be delivered under the Forward Contract is capped at 2.5 million shares, with the SPV pledging an equivalent number of Common Units as security. There is an option for the SPV to settle the contract in cash and retain ownership of pledged Common Units under specific conditions.

Approved by the Company’s Board of Directors, Mr. Avellan’s entry into the Forward Contract via the SPV allows him to maintain voting rights over the pledged Common Units and participate in potential stock price appreciation up to the cap price. This transaction reflects Mr. Avellan’s confidence in the company’s future prospects, representing only a small fraction of his substantial holdings.

It’s essential to note that the information provided in this disclosure does not constitute a filed document under the Securities Exchange Act of 1934 and is not incorporated by reference into any filings under the Securities Act of 1933 or the Exchange Act, except if explicitly referenced in such filings.

This article was based on the recent Form 8-K filing by AST SpaceMobile, Inc., and was signed by Andrew M. Johnson, the Chief Financial Officer and Chief Legal Officer, on behalf of the company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read AST SpaceMobile’s 8K filing here.

About AST SpaceMobile

AST SpaceMobile, Inc, together with its subsidiaries, develops and provides access to a space-based cellular broadband network for smartphones in the United States. Its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage. The company was founded in 2017 and is headquartered in Midland, Texas.