Sky & Space Global Raises $12 million to Connect People in Equatorial Belt

UK company Sky and Space Global reportedly has received signed binding commitments for raising $12 million in a two-tranche share placement to investors as part of its $15 million fundraising effort, the company announced today. The placement is priced at $0.03 per share and is conditioned on the lodgement of the prospectus. The funds are to be used to facilitate the launching of the first batch of the company’s Pearls constellation nano-satellites network. The launch with Virgin Orbit is due to take place by mid-2019 and is the initial stage of the company’s plan to operate a network of 200 nano-satellites to provide around the clock affordable voice, data, instant messaging, M2M and IoT communications to the equatorial belt. 

The company’s services will also bring to the equatorial region a huge range of life saving services like search and rescue, disaster management, emergency response, security alarms and recreational tracking. This is in addition to a whole range of traditional services including cellphone applications, offshore communications, smart farming, interactive TV, airplane, vessel and animal tracking, water and electric metering, grid monitoring, and ATM.

The company said it also plans to conduct a fully underwritten priority offer (PO) to raise a further $3 million, with an option to accept a further $1 million on the same terms in the event the offer is oversubscribed and in accordance with shareholder approved.

“We have undertaken this round of financing at a crucial time for the company, as we prepare to launch our first batch of Pearls nano-satellites into space,” said Meir Moalem, managing director and CEO, Sky and Space Global. “The support we have received is indicative of the confidence the market has in our ability to deliver on milestones and achieve the objectives we have set out for the company.”

The offering has received the backing of existing investors in addition to several new institutional and professional investors. In addition, chairman Michael Malone, managing director and CEO Meir Moalem and other directors will be investing $710,000 in the placement, subject to shareholder approval. The move underscores management's support and confidence in the company. Existing eligible shareholders will also be given the opportunity to participate in the offering for up to $15,000 on the same terms.