- Kleos Space (KSS) receives strong support to raise $12.6 million to fund its technology, commercial growth and to expand its team
- Investors in Australia and the U.S supported the placement of around 14.8 million CHESS depositary interests over Kleos shares at 85 cents per CDI
- The funds will go towards expanding the company’s constellation with the launch of a fourth satellite cluster, and to scale its data-as-a-service offering
- It’s also looking to expand its team in Luxembourg, the UK and Denver to meet customer demand
- Shares are trading 13.6 per cent lower at 82.5 cents at 3:38pm AEST.
Kleos Space (KSS) shares resumed trade today following details of a capital raise of $12.6 million to fund its technology, commercial growth and to expand its team.
The funds have been secured from new and existing institutional and sophisticated investors in Australia and the U.S, through a placement of around 14.8 million CHESS depositary interests over Kleos shares at 85 cents per CDI.
The issue price represents a 9.6 per cent discount to the 30-day volume-weighted average price and includes three attaching options for every five CDIs issued, exercisable at $1.20.
CEO Andy Bowyer welcomed new cornerstone investments from Perennial Value Management and Thorney Investment Group.
He said the support received reflects the space-powered radio frequency reconnaissance data-as-a-service company’s technical and commercial progress.
The funds from the capital raise will be used to continue its constellation expansion with development and launch of a fourth satellite cluster and to scale Kleos’ data-as-a-service offering.
The company said cluster one, known as the scouting mission involves four satellites operating and collecting data which is evaluated and passed on to customers.
Cluster two pertains to the vigilance mission where four satellites are in orbit commissioning. Here they are designed to deliver twice the data collected by the scouting satellites.
The patrol mission of cluster three will see the satellites built for an upcoming launch with SpaceX, with twice the payload capability of the previous cluster’s satellites.
KSS said it has over 170 qualified deals in its development pipeline including 69 Government agencies and entities, and 26 integrators and analytics tool vendors engaged to include data in their service offerings.
There are also reportedly 18 resellers across US, Europe, Japan, Australia, and Middle East countries, with another ten resellers in discussions.
In terms of growing its team, the company said it’s actively recruiting to facilitate the transition to an independent board to prepare for complementary listing.
It’s also growing its engineering and customer satisfaction teams in Luxembourg, the UK & Denver to meet customer needs and maintain OPEX to facilitate achieving an earnings before interest, taxes, depreciation, and amortisation positive status quickly.
Shares were trading 13.6 per cent lower at 82.5 cents at 3:38pm AEST.