11:47 AM EDT, 05/29/2024 (MT Newswires) -- (Updates with stock price movement in the headline and first paragraph)

AST SpaceMobile ( ASTS ) shares surged 50% in recent trading Wednesday after it secured a $100 million commitment from Verizon Communications ( VZ ) as part of a new direct-to-cellular partnership.

AST has agreed to provide direct-to-cellular service to Verizon's customers, which is expected to allow AST to target full coverage of continental US, the companies said.

Verizon's commitment includes $65 million of commercial prepayments and $35 million of convertible notes, they added.

Price: 7.99, Change: +2.66, Percent Change: +49.91