New agreement secures finance for Sky and Space Global
Australian space company Sky and Space Global (SAS) has signed a definitive agreement with Danish satellite maker GomSpace for satellites for its proposed global communications constellation.
SAS managing director and chief executive Meir Moalem said this was a key step towards the launch of its new global coverage satellites and first revenues.
“The new 6U agreement will allow Sky and Space to deliver a global coverage nanosatellite fleet servicing the IoT (internet of things) and M2M (machine to machine) sectors, with strong potential demand for these services already evident,” he said.
That’s all conditional on cash-strapped SAS obtaining secured financing and SAS and GomSpace reaching an agreement on changes to the 2017 Pearls agreement.
“Should changes to the existing Pearls agreement entered into in 2017 … not be finalised with GomSpace within 30 days … it is likely that SAS will not be able to execute its operating strategy within the time frame as currently planned unless a suitable alternate satellite manufacturer is engaged,” the company said.
SAS, based in Perth, is planning what it calls the Pearls constellation of as many as 200 nanosatellites in equatorial orbit, providing low-cost communication and internet services for markets in Africa, South America and Asia.
Under the 6U agreement with GomSpace, there will be an additional constellation high inclination orbits, allowing full global coverage, including Australia, Russia, China, South Africa, Argentina and Canada.
Launch is planned for early next year. The company has signed launch MoUs with Arianespace and Rocket Lab.
However, the company continues to experience cash flow problems and is seeking to raise additional funds through a $7.4 million second tranche and priority offer capital raising required to fund ongoing operations and the business plan.
SAS shares remain in a voluntary trading halt.
The new agreement with GomSpace contemplates a new definitive Pearls agreement to replace the existing Pearls agreement signed in 2017.
Under the new agreement with GomSpace, new nanosatellites will be delivered in two batches each of eight, with the first eight to be delivered by first quarter 2020.
Order value of the first batch is €5.2 million and batch two is up to €3.8 million.
Receive the latest developments and updates on Australia’s space industry direct to your inbox. Subscribe today to Space Connect here.