Kleos Space S.A. (ASX: KSS, Frankfurt: KS1) has secured a €3.1 million loan agreement with Dubai-based family office Winance to progress its commercialization plans and repay the extant convertible note— Winance will further provide optional €6.0 million through a convertible note agreement, subject to final documentation.
Dubai-based Winance reached out to Kleos Space during the trade mission organized in Dubai by the Chamber of Commerce of the Grand Duchy of Luxembourg, in cooperation with the Ministry of the Economy, the Luxembourg Embassy and the Luxembourg Trade and Investment Office in Abu Dhabi at the end of January.
These funds will allow Kleos to repay extant Evolution Equities convertible notes for the development and launch of the firm's second cluster of satellites and increase its presence within the US defence sector. The Loan Agreement ensures Kleos is well-funded to execute its commercialization plans while awaiting revenues from early adopter contracts.
Kleos will commence generating first revenues after the launch of its Scouting Mission satellites from Chennai, India, in the coming weeks. This initial satellite cluster is the foundation of a larger constellation which will geolocate radio frequency transmissions to provide global activity-based intelligence irrespective of the presence of positioning systems, unclear imagery and targets out of patrol range.
CEO of Kleos Space, Andy Bowyer, said that the Loan Agreement provides Kleos with working capital to progress the development of the company's second cluster of satellites while awaiting revenues from the Scouting Mission satellites. Luxembourg has a successful economic partnership with the UAE, developed over the past decades. This collaboration provides Luxembourg-based organisations operating in the space sector, such as Kleos Space, with access to investment and financing opportunities.
Waqas Ibrahim, Director & CFO of Winance, added that this new partnership is in line with Winance’s vision of investing in proficient and progressive thinking management teams. The firm is convinced that this collaboration can serve as a springboard for both our companies in the GCC, Australian and Luxembourg markets. Kleos technology has never been more relevant than today in addressing a real world need and has attracted interest from governments and private organizations.
Marc Serres, CEO of the Luxemboug Space Agency, noted that Luxembourg and the UAE share the same commitment to support the economic development of the commercial space industry. The agreement between a Luxembourg-based company and a Dubai family office shows that our bilateral cooperation with the UAE is successful when it comes to developing high technology space products and services through financing instruments tailored to meet the needs of private companies.