SAS halves placement share price

11/11/2019 - 11:49

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West Perth-based Sky and Space Global has revised its previously announced plans for a $15 million capital raising, with the funds to be raised through a placement and rights issue at 0.5 cents per share.

SAS halves placement share price
Sky and Space plans to raise $10.8 million through a 1:1 rights issue and $5 million through a placement.

West Perth-based Sky and Space Global has revised its previously announced plans for a $15 million capital raising, with the funds to be raised through a placement and rights issue at 0.5 cents per share.

This represents a 50 per cent decrease on the previous placement share price of 1 cent per share.

Sky and Space plans to raise around $10.8 million through a 1 for 1 rights issue of approximately 2 billion shares, at an issue price of 0.5 cents per share.

Under the placement, the company will issue 1 billion shares also at 0.5 cents per share to raise $5 million.

The company said it would use the funds to launch its first eight 6U nanosatellites and commercial services, as well as execute its business plan.

Merchant Group subsidiary Merchant Corporate Advisory will act as lead manager to the placement; the previous placement plan, announced in August, was to be jointly managed with Chieftain Securities.

Sky and Space managing director Meir Moalem said it is a challenging and important time for the company, but it is moving closer to the commercialisation of its services.

“During 2019, we have continued to develop our hardware, technology, infrastructure and commercial channels and signed additional future potential customers in preparation for commercialisation,” Mr Moalem said.

Sky and Space remains in voluntary suspension, which it expects to end once the capital raising is completed and two Australian resident directors are appointed.

Its non-executive chairman (and iiNet co-founder) Michael Malone retired from the board earlier this year, along with non-executive director Di Fulton.

Earlier this year, the company announced plans to raise $15.24 million via a placement and priority offer, but only raised $9.8 million, as outlined in its September quarterly cashflow report.

Shares in Sky and Space Global are trading at 28 cents per share, as at 2:40pm AEDT.

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