There has been talk for a while that AST SpaceMobile (NASDAQ: ASTS) would eventually need to raise more capital. That day has come, and as a result, shares of the space-based telecom company were trading down by nearly 30% early in the session Wednesday.

AST SpaceMobile is working to commercialize technology that it hopes will one day turn any cellphone into a satellite phone, which would, in theory, benefit those who travel frequently or who live in areas with poor terrestrial cell network coverage. It is a risky, but intriguing, space technology, and the company recently cleared some milestones toward commercializing the service.

But as we noted back in May, it ended the first quarter with just $185.7 million in cash and burned through $44.5 million during the period. Given that AST SpaceMobile does not expect to begin launching its satellite constellation until early 2024, it always seemed likely that it would need to raise additional funds.

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Source Fool.com