In recent announcements, SAS said it has gained an unsecured US$1.1 million convertible loan agreement with independent, third-party Israeli finance provider Telefox.
“Funds from the loan will be used to provide working capital and allow SAS to finalise discussions around a new funding package to support the company achieving its goals,” SAS said.
The loan matures in a year. SAS has also confirmed the issue of 58,571,566 shares and 58,571,566 options, exercisable at five cents each to participants of the priority offer.
Gross proceeds would be $1,757,151 at the price of three cents per share.
These 329,075,133 options were to be suspended from quotation, pending SAS being reinstated to official quotation on the Australian Securities Exchange.
SAS, based in Perth, is well advanced in plans for what it calls the Pearls constellation of as many as 200 nanosatellites in equatorial orbit, providing low cost communications, data and internet services for markets in Africa, South America and Asia.
Under the 6U agreement with Danish satellite builder GomSpace, there will be an additional constellation in high inclination orbits, allowing full global coverage, including Australia, Russia, China, South Africa, Argentina and Canada.
The first launch is planned for early next year.
SAS has faced its share of challenges, including cash flow problems and loss of two board members, who are still to be replaced.
The company has substantially reduced operating costs, saving $2 million per year. Company founders and directors took a 50 per cent pay cut to set a personal example and invested $300,000 of their own funds in the company.
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