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Kleos Space (ASX:KSS) set to launch capital raise

The Market Online Deal Room
ASX:KSS
06 July 2020 11:10 (AEDT)
Kleos Space (ASX:KSS) - CEO, Andy Bowyer

Source: Paperjam

Kleos Space (KSS) has requested two consecutive trading halts ahead of a capital raise announcement.

As the company wants to issue a significant number of securities, it has requested consecutive trading halts, as it believes the raise may have a material effect on its share price.

The trading halts will remain in place until an announcement is made regarding the raise, which Kleos expects will occur before July 10.

Kleos has also updated the market on the launch of its new data-collecting technology, which was installed on the In-Space Missions Faraday-1 spacecraft.

On July 4, the spacecraft launched from New Zealand. However, following a successful lift-off, first stage burn, and separation, an anomaly was detected four minutes in, causing Kleos’ satellite to not enter orbit.

Over the coming weeks, Kleos will assess any financial impacts that may have arisen from the mission’s nonsuccess.

This launch was meant to complement the Kleos Scouting Mission, which aims to uncover hidden maritime activity such as illegal fishing, trafficking, and smuggling in areas such as the South China Sea and the African Coast.

Despite the satellite not entering orbit, Kleos says this had no effect on the Scouting Mission Satellites, which are ready for launch in India on a Polar Satellite Launch Vehicle (PSLV).

“Our satellites remain safe in India awaiting launch on PSLV C49. Clearly, we are disappointed not to get this technology development into orbit right now, but we all know getting to space is hard which is one of the reasons it’s such a valuable thing to do,” CEO Andy Bowyer said.

“We remain excited about getting our first data and revenues upon the successful launch of our Scouting Mission satellites from India,” he added.

This mission was set to last two years, with aims to observe the Earth in a polar orbit and detect data for defence and security applications.

Shares in Kleos last traded for 36 cents each on July 3.

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