The company wants to raise a total of $15.8 million, comprising a $10.8 million non-renounceable entitlement issue to eligible shareholders and $5 million to professional investors on the same pricing and terms as the entitlement issue.
This replaces an earlier proposal to raise $15 million through a share placement.
SAS said that on completion of the entitlement issue and placement, the company would be well placed to accelerate its global growth strategy as it prepares to launch its first commercial 6U nanosatellites.
“Growing demand for satellite IoT, M2M and real-time connectivity by telecommunications providers around the world represent a significant and growing market opportunity, with the total addressable market expected to grow globally to US$1.4 billion by 2027,” SAS said in its announcement of the fund raising proposal.
SAS incorporated in the UK in 2015 and listed on the Australian Securities Exchange in May 2016.
The company is based in Perth and 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.
SAS is proposing an additional satellite constellation, allowing full global coverage, including Australia, Russia, China, South Africa, Argentina and Canada. The company has more than 50 agreements in place for use of its services.
In 2017, SAS Global launched three prototype satellites on an Indian rocket to test its technology.
SAS has experienced its fair share of problems, particularly attaining the cash needed to advance its operations.
SAS managing director Meir Moalem said that during 2019, “SAS continued to develop our hardware, technology, infrastructure and commercial channels and signed additional future potential customers in preparation for commercialisation”.
“On behalf of SAS, I’d like to express my thanks to shareholders for their ongoing support at this challenging and important time as we move closer to commercialisation of our services,” he said.
SAS remains in voluntary suspension from trading on the ASX.
It says it expects the suspension to end once the capital raising is completed, two Australian resident directors are appointed and all ASX requirements are satisfied.
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