SAS Global to raise $16 million to fund satellite network

Perth satellite IoT communications company Sky and Space Global (ASX: SAS) is attempting to raise $15.8 million from investors to extend its planned equitorial nano-satellite coverage to a fully global one.

In an announcement to the stock exchange the company revealed the raising would be made up of a $10.8 million non-renounceable entitlement issue to shareholders and $5 million placement to professional investors.

In a letter to shareholders managing director and CEO Meir Moalem said the company was now on the cusp of commercialisation.

He said: “The company has been working hard on all fronts to advance our technology, software and commercial traction.

“The company (has) a clear pathway to the launch of our first batch of 6U nano-saltellites in 2020 and the goal of generating first commercial revenues.”

The raising will pay for the manufacture of satellites and ground terminals, and negotiation of launch and ground station contracts.

An operations centre will be established with satellite operators and network engineers, and there is provision for working capital.

Merchant Corporate Advisory has been appointed as lead manager for the offer.

At this stage SAS will not manufacture any hardware itself, but will outsource production to contractors.

The company has successfully launched three satellites and believes it has ‘first mover advantage’.

Another 200 satellites are planned, all operating in the S-band range.

Picture: Sky and Space Global

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