PARIS — Sky and Space Global, a satellite IoT and messaging startup whose project has been stalled because of liquidity issues, said its shareholders declined to subscribe to the full recapitalization of 15 million Australian dollars ($10.4 million), forcing a separate attempt to place the shortfall.
Australia-traded, British-registered Sky and Space (SAS) had received shareholder approval in late September to raise the 1.5 billion new shares but its efforts in October to confirm that support yielded just 10.9 million Australian dollars.
The company has set a Dec. 16 shareholder meeting to approve a share placement with selected investors totaling 5 million Australian dollars.
“The company received strong demand to support the recapitalization raising. However, due to deteriorating market conditions and equity market sentiment in October 2019, the full 15 million [Australian dollars] placement was not completed,” the company said in a statement to the Australia’s ASX exchange.
SAS has said it needs 15 million Australian dollars to cover the construction of eight inclined-orbit satellites by GomSpace of Sweden and Denmark. These satellites will, the company has said, provide near-term revenue and allow for the investment in the larger equatorial-orbit constellation, also to be built by GomSpace.
“On completion of the entitlement issue and the placement, SAS will be well-;laced to accelerate its global growth strategy as it prepares to launch its first commercial 6U nanosatellites,” the company said Nov. 8.
SAS is GomSpace’s biggest customer. Its cash issues have caused a deterioration of GomSpace’s financial results, in part because GomSpace made capital investments in plant expansion based on the expected SAS work: http://bit.ly/2PjFM79
Merchant Corporate Advisory Pty Ltd. is the lead manager for both transactions.
Trading in SAS shares has been suspended during the capital drive and will not resume until the funds are raised and SAS has appointed two Australian-resident members to its board.
SAS said it continues to work on U.S.-based debt financing and grants from the European Commission’s Horizon 2020 research program and from the 22-nation European Space Agency (ESA).