06:06 AM EDT, 05/16/2024 (MT Newswires) -- (Updates with the stock move in the headline and second paragraph.)

AST SpaceMobile ( ASTS ) and AT&T ( T ) said late Wednesday they have signed a commercial agreement to provide a space-based broadband network for cell phones.

Shares of AST SpaceMobile ( ASTS ) surged more than 36% in recent premarket activity on Thursday.

The agreement extends into 2030, the companies said, adding that previously they had been working together under a memorandum of understanding.

AST SpaceMobile ( ASTS ) said that this summer it expects to deliver its first commercial satellites to Cape Canaveral for launch into orbit.

Chris Sambar, AT&T ( T ) head of network, will be appointed to AST SpaceMobile's ( ASTS ) board, the companies said.

Financial details weren't provided.

Separately, AST SpaceMobile ( ASTS ) reported a Q1 loss late Wednesday of $0.16 per diluted share, narrower than a loss of $0.23 a year earlier. Two analysts polled by Capital IQ expected a loss of $0.19.

Revenue for the quarter ended March 31 was $500,000. Three analysts surveyed by Capital IQ expected $3.7 million.

Price: 3.2600, Change: +0.87, Percent Change: +36.40