In advice to the Australian Securities Exchange (ASX), managing director Meir Moalem said the company expected the voluntary suspension to end at the start of trading on 3 May.
SAS initially sought a suspension of trading on 4 April. Subsequently, the company advised that it had funds to operate for another two months and needed additional funds to proceed with launch plans.
“Following the recent unexpected resignation of two non-executive Australian resident directors, and the subsequent impact of their resignation on the company’s ability to legally close the $7.4 million second tranche and priority offer capital raising required to fund the company’s ongoing operations and business plan, SAS requested to be placed into voluntary suspension,” Moalem told the ASX on Thursday.
He said the extension to the trading halt would enable SAS to finalise the appointment of two new Australian resident non-executive directors with the requisite skills and experience.
The company would also complete negotiations of material commercial and operational agreements to support the company’s ongoing operations and growth strategy.
SAS, based in Perth, is planning what it calls the Pearls constellation of around 200 nanosatellites in equatorial orbit, providing low cost communication and internet services for markets in Africa, South America and Asia.
Under its new 6U agreement with Danish satellite builder GomSpace, there will be an additional constellation of eight to 16 satellites 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 the planned launch of the first batch of nanosatellites had been moved from mid-2019 to early-2020.
Despite its financial challenges, SAS has runs on the board, launching three prototype nanosatellites in June 2017 aboard an Indian rocket as a test of its technology.
Receive the latest developments and updates on Australia’s space industry direct to your inbox. Subscribe today to Space Connect here.