Sky to raise $15m

Local tech company Sky and Space Global has tapped investors for $10 million and has launched a $5 million share purchase plan, with funds to be spent on the design and construction of its first batch of nanosatellites.

Sky issued shares at 12 cents each with strong demand from professional and sophisticated investors.

Merchant and Chieftain acted as lead managers to the placement.

The company will also offer existing shareholders an opportunity to invest on the same terms as the placement, limiting the share purchase plan to $15,000 per investor and $5 million overall.

Proceeds from the raising will be used primarily for the completion of design, construction and launch costs of the first 20 pearl nanosatellites.

Completion of the project is expected in the first quarter of 2019.

“We are happy to complete an additional oversubscribed capital raising,” Sky chief executive Meir Moalem said

“We are also happy to offer our loyal shareholders the same terms and opportunity to continue supporting Sky and Space Global.

“This interim capital raising will further help us push forward towards our launch of the first "Pearls" and establishing a successful business.”

Shares in the company finished down 12.9 per cent at 13.5 cents each today.