8-KMaterial Agreements

AST SpaceMobile, Inc. 8-K Report, Material Agreement (Sep 24, 2021)

Filed September 24, 2021For Securities:ASTS

Summary

AST SpaceMobile, Inc. (ASTS) filed an 8-K on September 24, 2021, to disclose a material definitive agreement. The company, through its subsidiary AST & Science LLC, entered into a Letter Agreement with Joint Stock Company GK Launch Services (GK) on September 20, 2021. This agreement amends their existing launch services contract. The primary purpose of the Letter Agreement is to facilitate the launch of AST SpaceMobile's BlueWalker 3 (BW3) test satellite. Due to delays with a primary payload under the original contract with GK, AST SpaceMobile secured an alternative launch with SpaceX for March 2022. The new agreement with GK acknowledges this and allows both parties to explore future launch opportunities, applying a $2.7 million credit from prior payments to any such future services. This effectively terminates further obligations under the original GK contract unless a new agreement is reached.

Key Highlights

  • 1AST SpaceMobile amended its existing launch services contract with GK Launch Services (GK) via a Letter Agreement dated September 20, 2021.
  • 2The amendment addresses the launch of the BlueWalker 3 (BW3) test satellite.
  • 3AST SpaceMobile has secured an alternative launch for BW3 with SpaceX for March 2022 due to delays with GK's primary payload.
  • 4The Letter Agreement allows both parties to seek future launch opportunities.
  • 5A $2.7 million payment made by AST SpaceMobile to GK under the original contract will be credited towards future launch services if agreed upon.
  • 6Neither party has further obligations under the original GK contract unless a new agreement for future services is reached.

Frequently Asked Questions

The Letter Agreement modifies the existing launch services contract to accommodate the delayed launch of AST SpaceMobile's BlueWalker 3 test satellite. It allows AST SpaceMobile to proceed with an alternative launch provider (SpaceX) and sets the terms for future collaboration or the application of prior payments to new services.

The original contract is effectively amended. Due to a primary payload delay with GK, AST SpaceMobile arranged an alternate launch with SpaceX. The Letter Agreement absolves both parties of further obligations under the original contract unless a new agreement for future launch services is made, in which case a $2.7 million credit from prior payments will be applied.

AST SpaceMobile has secured a launch period with SpaceX beginning March 2022 for the BlueWalker 3 test satellite. The exact timing is subject to the satisfactory and timely completion of BW3's construction and testing.

AST SpaceMobile has paid $2.7 million to GK Launch Services under the original contract. This amount will be credited towards any future launch services agreed upon with GK. The company has effectively terminated further obligations under the original contract with GK without additional payments unless a new agreement is reached.