Corporate restructure to kickstart new fundraising program for SAS
Australian space company Sky and Space Global (SAS) has called a general meeting of shareholders to approve additional fundraising and a corporate restructure.
The company said that it is a key part of its corporate, board and financial restructuring to allow the company to resume trading on the Australian Securities Exchange (ASX).
The meeting will be held on 27 September. SAS has been in a voluntary trading halt since April.
In a notice to the ASX, SAS said the fundraising to be approved by shareholders was a $15 million share placement at 1.0c per share, together with one free attaching option exercisable at $0.025, expiring on 31 July 2022, for every four shares subscribed for and issued.
Funds raised will be used to complete construction, testing and launch of the company’s first eight commercial 6U nanosatellites in mid-2020.
These already have commercial contracts in place and will generate the first material cash flow and contribute towards ongoing operating costs.
The second batch of eight commercial 6U nanosatellites is scheduled for launch in the second half of fiscal year 2020.
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.
The company is proposing an additional satellite constellation, allowing full global coverage, including Australia, Russia, China, South Africa, Argentina and Canada.
SAS has experienced its fair share of problems, particularly attaining the cash needed to advance its operations.
“We are working our way through a challenging period for Sky and Space, and are very focused on securing appropriate funding while also moving forward operationally towards launch,” said SAS managing director and chief executive Meir Moalem at the end of July.
SAS said it had been working with Merchant Corporate Advisory, Jindalee Partners and Chieftain Securities as its corporate advisers for the refinancing and corporate restructuring, with planned re-quotation to the ASX on completion of the changes.
SAS said it intended to stay in voluntary suspension until the refinancing and board restructure was completed. That’s expected in the days following the shareholder meeting at the end of September.
Receive the latest developments and updates on Australia’s space industry direct to your inbox. Subscribe today to Space Connect here.