Laughing Water Capital remains patient on NextNav Inc. as it awaits a Notice of Proposed Rule Making from the Federal Communications Commission that would allow the company to use its wireless spectrum for 5G communication. The firm noted that despite the regulatory delay, NextNav has cleaned up its balance sheet by calling SPAC warrants and converting convertible debt to equity during the second quarter of 2026. CEO Miriam Sorond testified before a House subcommittee, and NextNav subsequently asked the FCC for permission to run interference tests around the U.S. Capitol Building. Laughing Water Capital believes the FCC would not approve such a request unless it strongly favored the technology and was confident in the test outcome. The firm also suggested that a shift from a highly levered to a cash-rich balance sheet could prompt short covering once quantitative investors reassess the company.
NextNav Inc.FCC rulemaking expected to allow 5G spectrum use, with positive regulatory signals from test approval request.