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Sky and Space Global Executive Director Brett Mitchell

Investors in rush to subscribe for Sky and Space Global placement at 4 fold premium to last raise.

In the public company space, the aim is to keep raising money at an incrementally higher price than the last capital raise, right up until the company kicks into revenue – in a perfect world that is.

Sky and Space Global have really kicked the ball out of the park in this regard after just their second capital raise that was completed this week, went oversubscribed at 8.5c, more than 4 times higher than the initial 2c capital raise just 6 months ago when they were back door listed by Perth corporate players Brett Mitchell and Peter Wall.

The company raised $7 million this week to fast-track development of its disruptive “nano-satellite” telecommunications technology as it progresses with the inaugural launch of its first three demonstration satellites.

In a statement to the ASX, the Perth-based company said it had received firm commitments for the “significantly oversubscribed” capital raising that comprised a sophisticated investor placement of $5 million and a priority offer to shareholders as at December 2nd of $2 million, at 8.5c per share.

Sky and Space say they are now fully funded and in a strong cash position with more that $8 million in the bank as they move towards the launch of their initial 3 nano-satellites in the second quarter of 2017.

The company’s technology is based on “Nano-satellites “ or miniature satellites that are small enough to fit into the palm of your hand that are capable of delivering voice, data and text communications to remote regions of the globe currently underserviced by traditional cellular operators.

In an update to shareholders, the company said the capital raising would allow it to move to the next phase of commercialisation of its technology ahead of the rollout of its first constellation of 200 nano-satellites in mid-2018. It would also allow it to rapidly advance its proprietary inter-satellite software systems and secure launch slots with Virgin Galactic for 2018-19.

Shorter term, management said the capital raising came at a very exciting time with construction of its demonstration “3 Diamonds” nano-satellites nearing completion and their “in-space operations testing” to commence shortly.

Sky and Space Global CEO Meir Moalem said: “This funding round strengthens our balance sheet as we progress to the exciting launch of our initial “3 Diamonds” nano-satellites in Q2 2017, now only 6 months away. This is a major upcoming milestone for the company which has the potential to create significant value for our shareholders as we build out a constellation to bring affordable communications coverage to billions of people globally- to anyone, anywhere, anytime.”

Sky and Space Global are planning to launch their “3 Diamonds” satellites on the Polar Satellite Launch Vehicle from India’s space agency ISRO, which recently successfully launched into orbit carrying satellites, including nano-satellites, from three different nations, a move that sent the company’s shares skyrocketing in the process.

The company is targeting remote areas and industries with its nano-satellite offering. These include sectors such as shipping and aviation, which are currently badly serviced by the cellular players, but where management sees big opportunities for its wholesale, narrowband, low-cost voice, text and data network.

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