Nano-satellite player Sky and Space Global has closed a heavily oversubscribed share placement after receiving bids to raise $10 million in order to advance its innovative telecommunication network based on miniature satellite technology.
The company told the market on Wednesday that it had received firm commitments from sophisticated and professional investors for the placement of 52 million new shares, priced at $0.19 per share.
Management said the $10m would be used as working capital to progress development of its full constellation of up to 200 nano-satellites, following the launch of its 3 prototype units in late May.
The launch will be on board the Indian Space Research Organisation’s Polar Satellite Launch Vehicle and is aimed at paving the way for the deployment of Sky and Space Global’s full equatorial constellation of 200 nano-satellites 2020.
Sky and Space Global CEO Meir Moalem said: “The result of our latest placement demonstrates the trust and confidence of our investors and our credibility as a brand. This capital raise also further insures our financial future.
“We are fully committed to justify this trust by ensuring the launch of the full equatorial constellation of nano-satellites is successful and delivered according to plan.”
Following the placement, which is being jointly managed by Merchant Corporate Advisory Pty Ltd and Patersons Securities Limited, the company said it would have over $12 million cash at the bank.
The update comes as the count down begins to the long-awaited launch of the first three miniature satellites which moved a step closer last month with news they had been successfully integrated into the space launch pod.
Wednesday’s capital raising is further evidence that Sky and Space is looking beyond the launch of the first three nano-satellites in its quest to provide low cost, nano-satellite driven voice, text and data services to remote areas of the world that are currently under-serviced by existing cellular players.
Unlike traditional, large scale satellites that are very expensive to launch and maintain, Sky and Space Global’s nano-satellites are small enough to fit in the palm of your hand. They work on the theory that it is far cheaper to build, maintain and launch 200 miniature satellites than it is to operate one or two very large ones.
Sky and Space already have wholesale customers locked in to take 100% of the bandwidth from the first three satellite units.
The company is looking to provide voice, data, and instant messaging services to telecoms providers, governments, corporate customers and poorly-serviced transport industries such as airlines and shipping companies.
Sky and Space Global’s amazing share price run has seen the stock jump from a low of 1.6c in August last year to 26c last month. It closed at 22c yesterday.
