The Midland Development Corporation approved a performance-based incentive package worth up to $66 million over 30 years.
- The proposed expansion includes a 400,000-square-foot satellite manufacturing facility expected to generate $116 million in property-tax revenue.
- At full buildout, the project targets 1,800 jobs, $144 million in annual payroll and up to $150 million in taxable capital investment.
- AST also completed a $1 billion offering of convertible notes, raising about $983.6 million in net proceeds.
Shares of AST SpaceMobile, Inc. (ASTS) climbed 3% premarket on Tuesday after Midland officials projected a 132% return on the city’s incentive investment from the company’s satellite manufacturing expansion plans.
ASTS stock fell 1% on Monday to close at $57.42, putting the shares on track for their worst monthly run in more than two years.
On Monday, AST SpaceMobile also completed a $1 billion offering of convertible senior notes, generating about $983.6 million in net proceeds to fund growth initiatives and secure additional launch capacity for its space-based cellular broadband network.
ASTS Wins $66M Midland Incentive Deal
The Midland Development Corporation approved an agreement offering AST SpaceMobile up to $66 million in performance-based incentives over 30 years. The deal, which still requires Midland City Council approval, would support a new satellite manufacturing and production facility spanning at least 400,000 square feet next to the company’s existing Spaceport Business Park operations.
Midland officials said the expansion could generate $116 million in local property tax revenue, representing a projected 132% return on the city’s incentive investment. The agreement does not include property or sales-tax abatements, meaning local taxing entities would begin benefiting as the new facility and equipment enter the tax rolls.
Officials also estimated the project could lift the Midland metropolitan area’s GDP by 1.8%, helping reduce the region’s dependence on oil and gas. “This is significant in terms of economic diversification,” MDC Executive Director Sara Harris said, noting that expanding non-energy industries could help insulate Midland from commodity-price swings.
ASTS Could Become A Top Midland Employer
At full buildout, AST would be required to create 1,800 jobs, generate $144 million in annual payroll and make up to $150 million in taxable capital investment. The positions are expected to include satellite assembly, manufacturing, engineering, warehousing, supply chain and production-support roles.
“If they meet all of these projections, they perhaps will be the largest private employer and have nothing to do with the oil and gas industry,” MDC Chairman Brad Bullock said. “It’s a pretty amazing opportunity.” AST representatives also highlighted the company’s in-house training programs, saying workers with limited aerospace experience could be trained to manufacture satellites and electronics.
ASTS Expansion Marks Nearly 5x Factory Growth
AST SpaceMobile has operated in Midland since 2018 under two previous MDC agreements. Its first agreement required 116 jobs and $14.25 million in personal-property investment. A subsequent agreement covered another Spaceport Business Park facility and required 15 additional jobs and $3 million in new investment. Those earlier commitments cannot be used to satisfy the new agreement.
“In terms of performance, AST has outperformed the requirements of the previous agreements that have been put in place,” Harris said. The expansion is a huge jump from AST’s original Midland footprint. In 2018, the company announced an 85,000-square-foot plant expected to create more than 160 jobs and attract over $30 million in investment. The latest proposal calls for a facility nearly 5x larger and more than 10x the original job target.
How Do Retail Traders Feel About ASTS?
On Stocktwits, retail sentiment for ASTS was ‘bullish’ amid a 214% jump in 24-hour message volumes.
One user said, “$ASTS we know what’s happening. We held on better than the rest of space. Consider today a $3 day in the bank that’s just being veiled by algos and hedgers. Soon it’s gonna click. And all these inexplicable red days are going to sum to a $20 day and that’s going to initiate the new rally.”
View this Stocktwits post
Another user said, “$ASTS just watching the Midland Board meeting video. Nice to hear them talk so favorably about ASTS, the much needed diversity of work it brings to their community, and their sense that it’s “a pretty amazing opportunity to take advantage of.”
View this Stocktwits post
ASTS stock has declined 1% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
