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NPA Stock: 10 Things to Know About New Providence Acquisition and the AST SpaceMobile SPAC Merger

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.

Visualization of the communication network around Earth. communications stocks

Source: NicoElNino /

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.

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