Kleos Space S.A. (ASX: KSS, Frankfurt: KS1) has entered into a binding term sheet for a 1.83 million euros debt instrument, to be issued in the form of secured convertible notes.
The procurement of Kleos' 2nd cluster of satellites can now commence and the launch in 2020 will be booked over the coming months. The second cluster will collect more data which in turn means an improved and higher value product for our customers.
The multi-satellite Scouting Mission system will form the foundation of a constellation that delivers a global picture of hidden maritime activity, enhancing the intelligence capability of government and commercial entities when AIS (Automatic Identification System) is defeated, imagery is unclear or targets are out of patrol range. The first scouting mission is comprised of 4x smallsats built by GomSpace in Denmark, each the size of a shoebox.
The first tranche convertible notes will have an aggregate face value of equivalent 1.35 million euros and will be issued at a discount for an aggregate issue price of 1.22 million euros. The First tranche notes will have an interest rate of 10 percent per six-month period, may be converted into CDIs at an issue price of equivalent 0.305 euros per CDI at the election of the investors, and must be redeemed 6 months from the date of issue unless earlier converted by the holder.
The maximum number of CDIs that may be issued on conversion of the first tranche notes is 2.96 million euros. The investors may elect to subscribe for the second tranche notes which will have an aggregate face value of equivalent 673.000 euros and will be issued at a discount for an aggregate issue price of 612.000 euros and will otherwise be issued on the same terms as the first tranche notes.
The maximum number of CDIs that may be issued on conversion of the second tranche notes is 1,480,000 euros. The investors will also be granted up to 917,000 euros options over CDIs with an exercise price of 0.245 euros per CDI and a three- year exercise period.
Andy Bowyer, CEO of Kleos, said that this investment is targeted to enable the firm to accelerate business development and revenue generating activities. Additional product development engineers will be recruited to strengthen the management team to assist with the delivery of the company's data products. Over the coming months, KLEOS Space will also recruit sales and sales support professionals to help respond to inbound sales inquiries and manage key accounts, increasing orders and contracts.
For all involved in the satellite and space industry and the various market segments that add value to these dynamic environments, the 2020 SmallSat Symposium is truly worth your consideration for attendance.
The SmallSat Symposium is hosted by Satnews Publishers which, since 1983, has been a provider of a satellite news, media and events. This information packed forum was created to enable you and your company to secure a larger portion of market share as well as to take part in the next stages of your company's or organization's growth.
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This event assembles more than 100 diverse speakers, all of whom possess deep industry experience. Additionally, numerous opportunities exist to mingle and network with peers while enjoying exceptional, complimentary meals and refreshment breakfast.