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.
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 upcoming SPAC merger with AST SpaceMobile.
- 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.