AST SpaceMobile (NASDAQ:ASTS) stock climbed 4% following the announcement that the company secured $100 million in non-dilutive equipment financing aimed at supporting its manufacturing expansion and network rollout plans.

The developer of space-based cellular broadband networks revealed that the financing, led by Trinity Capital Inc. (NASDAQ:TRIN), will provide long-term liquidity through 2031. At closing, AST SpaceMobile drew $25 million against previously acquired equipment, with both existing and planned assets serving as collateral for the facility.

“This new non-dilutive financing enables AST SpaceMobile to continue its strong momentum executing against its accelerated operational plans,” stated Andrew Johnson, Chief Financial Officer of AST SpaceMobile.

As the company progresses in building its direct-to-smartphone satellite network, this marks AST SpaceMobile’s first equipment financing deal, signaling a shift from research and development towards full-scale manufacturing and deployment.

AST SpaceMobile also reported ending the second quarter with over $900 million in cash, cash equivalents, and restricted cash. The company has actively managed its capital structure, having issued convertible notes in January and retiring roughly half of those notes following a share price surge of over 100% in six months.

AST SpaceMobile stock price

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