Kleos Space S.A. (ASX: KSS, Frankfurt: KS1), a space- powered Radio Frequency Reconnaissance data provider, is pleased to announce that it has received commitments to raise A$19 million (equivalent to 11.7 million EUR or 13.8 million USD) via a placement of approximately 26,388,889 new ordinary fully paid CDIs1.

Following the successful launch of the Kleos Scouting Mission satellites (KSM1) on 7 November, Kleos is now well financed to execute the launch of the second cluster of satellites, Polar Vigilance Mission (KSF1) in mid-2021, and to develop its third cluster of satellites (KSF2), targeted to be in orbit before the end of 2021.

Andrew Bowyer, Kleos CEO, said: “We welcome and are delighted to be supported by both existing and new high-quality institutional investors who have recognised the Kleos vision and potential. Strong participation and demand are a clear endorsement of that opportunity”.

The Placement sets a strong foundation for Kleos Space following the successful launch of the Kleos Scouting Mission satellites. The Launch and Early Orbit phase is progressing according to schedule after which Kleos Space can commence the delivery of its data products.

Placement details

The Placement received strong support from new and existing institutional and sophisticated investors, with participation demand significantly in excess of the Placement target.

The Placement will be conducted at A$0.72 (EUR0.44/ US$0.52) per CDI, representing a 1.9% premium to the 15-day volume-weighted average price of securities traded leading up to 10 November 2020. The Company will issue the Placement securities in two tranches.

Settlement of the first tranche of 10,585,878 securities (of which 9,873,129 will be issued under Listing Rule 7.1 and 712,749 will be issued under Listing Rule 7.1A), is expected to occur by 16 November 2020, with allotment and application for quotation to occur on 17 November 2020. The remaining 15,803,011 securities are subject to shareholder approval, which will be sought at a general meeting targeted to be held in the last week of November 2020.

CDIs issued pursuant to the Placement will rank equally with existing ordinary CDIs of the Company. The proceeds of the Placement will be used to fund the next satellite clusters and provide additional working capital over and above the revenue stream that will commence following KSM1 commissioning in Q1 2021.

The Placement was managed by Bell Potter Securities Pty Ltd as Lead Manager and Evolution Capital Advisors Pty Ltd as Co-Manager.