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Sky and Space Global attracts $12 million to launch first batch of nano-satellites

Published: 16:39 21 Feb 2019 AEDT

satellite connectivity
Progressing towards revenue-generation from late 2019

Sky and Space Global Ltd (ASX:SAS) has received binding commitments to raise $12 million via a two-tranche share placement to sophisticated and professional investors at 3 cents per share.

Sky and Space Global managing director and chief executive officer Meir Moalem said: “We have undertaken this raise at a pivotal time for the company, as we prepare to launch our first batch of Pearls nano-satellites into space, and following this, start generating revenue from our existing customers through the binding signed contracts that we already have in place.

 

 

“This placement has been well supported by existing investors and several new high quality institutional and sophisticated investors that have joined our share register.

“The support we received is indicative of the confidence the market has in our ability to deliver on milestones and to achieve the objectives we have set out.

“Sky and Space Global chairman Michael Malone, myself [as managing director & CEO], and other directors will also invest a total of $710,000 in the placement, subject to shareholder approval, highlighting our support and confidence in the company.

$3 million fully underwritten priority offer

The company also plans to conduct a fully underwritten priority offer to raise a further $3 million, with the ability to accept up to $1 million of oversubscriptions on the same terms.

Moalem added: “Existing eligible shareholders have the opportunity to subscribe for up to $15,000 of fully paid ordinary shares on the same terms as the placement, ensuring that all our shareholders have an opportunity to participate in the exciting future of Sky and Space Global at this pivotal stage of its development.”

READ: Sky and Space Global signs reseller deal to grow its nano-satellite connectivity solution

The placement proceeds will be used mainly for capex payments to suppliers, completion of first Pearl launch activities, for operational working capital and for general administration costs.

The combined capital raisings of $15 million, together with completion of additional financing initiatives including US bank debt financing that is in advanced discussions and ongoing management of key supplier contract terms already underway, will see the company funded to progress to a revenue generating position from late 2019.

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