SAS Global pursues funds to launch first batch of sats next year

SAS Global pursues funds to launch first batch of sats next year

Max Blenkin

Australian space company Sky and Space Global (SAS) has sought to raise additional funds to proceed with its ambitious plan for a global constellation of small communications satellites.

The company, which listed on the Australian Securities Exchange in 2016, has issued a supplementary prospectus outlining its plans to proceed with a priority offer and Tranche 2 of its shares issue.

The Tranche 2 placement of almost 140 million shares aims to raise $4.1 million. The company’s Tranche 1 involved 260 million shares at an issue price of $0.03 per share.

They were last traded at 2.8 cents. SAS has a current market capitalisation of $58.98 million. In the supplementary prospectus, SAS said it had sufficient capital to fund ongoing operations for about two months.

“If the priority offer and the Tranche 2 placement are fully subscribed, the company will be able to undertake its intended business plan for the launch of the first batch of operational satellites by early 2020 without further delays,” it said.

Advertisement
Advertisement

“If the priority offer and the Tranche 2 placement are subscribed to 90 per cent or less, the company will need to undertake a further capital raising, or seek alternative financing, in order to execute its current business plan without changes.”

SAS is planning what it calls the Pearls constellation of around 200 nanosatellites, providing a low cost communication network for commercial use across a number of sectors, including the telecommunications and international transport industries.

 

SAS said the planned launch of the first batch of nanosatellites had been moved from mid-2019 to early-2020. The company’s initial plan was to place its nanosatellites in equatorial orbit, servicing for markets in Africa, South America and Asia currently not well supported by communications networks.

Under its new 6U agreement with Danish satellite builder GomSpace, there will be an additional constellation in high inclination orbits, allowing full global coverage.

That will allow the company to enter new markets, which include Australia, Russia, China, South Africa, Argentina and Canada, generating higher revenues.

SAS said it planned to use assets already developed for its Pearls equatorial constellation, including proprietary software, concept of operations and network infrastructure as part of the new 6U agreement global coverage constellation.

“The planned global coverage constellation provides the company with additional launch opportunities which are already in negotiation. In addition, subsequent launches beyond the global coverage constellation are intended to remain as planned under the current Pearls agreement,” it said.

Delivery of the new satellites from GomSpace will be in two batches, the first of eight satellites by the end of 2019 and a second optional delivery of another eight next year.

SAS has signed memorandums of understanding with Arianespace and Rocket Lab over possible future launches.

Receive the latest developments and updates on Australia’s space industry direct to your inbox. Subscribe today to Space Connect here.

Tags
Category
Receive the latest developments and updates on Australia’s space industry direct to your inbox. Subscribe today to Space Connect.

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.