8-KOther EventsExhibits & Filings

AST SpaceMobile, Inc. 8-K Report, Corporate Update (Sep 19, 2019)

Filed September 19, 2019For Securities:ASTS

Summary

This Form 8-K filing by New Providence Acquisition Corp. (the "Company") on September 19, 2019, details the consummation of its Initial Public Offering (IPO) and a subsequent exercise of the underwriter's over-allotment option. The IPO raised $200 million initially, with an additional $30 million raised from the over-allotment units. These funds, along with proceeds from a private placement of warrants to the Sponsor, were largely placed into a trust account, totaling $230 million. These actions establish the capital base for the Company, which is structured as a special purpose acquisition company (SPAC) seeking to identify and complete an initial business combination. Investors should note the funds are earmarked for a future merger and are subject to specific release conditions.

Key Highlights

  • 1New Providence Acquisition Corp. completed its Initial Public Offering (IPO) on September 13, 2019, issuing 20,000,000 units at $10.00 per unit.
  • 2A private placement of 5,500,000 private placement warrants was conducted with the Sponsor at $1.00 per warrant.
  • 3The IPO and certain private placement proceeds, totaling $200,000,000, were deposited into a trust account for the benefit of public stockholders.
  • 4The underwriters exercised their over-allotment option on September 19, 2019, issuing an additional 3,000,000 units at $10.00 per unit, raising $30,000,000.
  • 5The Sponsor concurrently purchased an additional 600,000 private placement warrants for $600,000.
  • 6The total amount deposited into the trust account after the over-allotment exercise and related private placement is $230,000,000.
  • 7Funds in the trust account are restricted and will only be released upon the completion of an initial business combination or the redemption of all public shares if a business combination is not completed within 18 months.

Frequently Asked Questions

This filing (Form 8-K) primarily announces the completion of New Providence Acquisition Corp.'s Initial Public Offering (IPO) and the subsequent exercise of the underwriter's over-allotment option. It details the funds raised and their placement into a trust account, which is a key step for a Special Purpose Acquisition Company (SPAC) to pursue a business combination.

Through the initial IPO and the over-allotment units, the company raised a total of $230,000,000. This includes the $200,000,000 from the initial IPO units and $30,000,000 from the over-allotment units. Additional capital was raised through private placements of warrants to the Sponsor.

The funds held in the trust account are restricted. They can only be withdrawn upon the successful completion of the Company's initial business combination. Alternatively, if the Company cannot complete a business combination within 18 months of the IPO, the funds will be used to redeem 100% of the Class A common stock held by public stockholders.

As a SPAC, New Providence Acquisition Corp.'s primary objective is to identify and merge with a target company. This filing marks the successful capitalization of the SPAC, enabling it to proceed with its search for a suitable business combination.