Kleos Space S.A (ASX: KSS, Frankfurt: KS1), a space-powered Radio Frequency Reconnaissance data-as-a-service (DaaS) company, has secured A$12.6m million from new and existing institutional and sophisticated investors via a Placement of approximately 14.8m new CHESS Depositary Interests over Kleos ordinary shares (CDIs) at A$0.85 per CDI (Placement).
Proceeds from the placement will fund the launch of future satellite clusters and to scale up Kleos’ data-as-a-service offering. The Placement includes a cornerstone investment of A$5m from Perennial Value Management
Commenting on the Placement, Kleos CEO Andy Bowyer said, “I am extremely pleased to welcome high-calibre institutional investors Perennial Value Management and Thornyey Group and the strong support we have received from new and current investors validates Kleos’ significant technical and commercial progress that is accelerating rapidly.” Capital raise to continue constellation expansion, fund cluster four development, launch & expand team to meet customer demand
Technology de-risked with the constellation growing in volume and capability:
- Cluster 1; Scouting Mission (KSM1); the four satellites are operating and collecting data with the evaluation data being delivered to customers
- Cluster 2; Vigilance Mission (KSF1); the four satellites are in orbit commissioning and are designed to deliver twice the data collect capacity of Scouting satellites
- Cluster 3; Patrol Mission (KSF2); the four satellites are in build for upcoming launch with SpaceX targeted for Dec 2021, with twice the payload capability of Scouting & Vigilance satellites
Commercial traction; building and converting pipeline:
- Over 170 qualified deals in the pipeline including:
- 69 Government agencies/entities,
- 26 Integrators and analytics tool vendors engaged to include data in their service offerings.
- 18 resellers across US, Europe, Japan, Australia, and Middle East countries on 4 continents & another 10 resellers in discussions
- Currently 48 signed evaluation contracts with customers
- In addition to the 170 Qualified leads there is greater than 50 unqualified leads ensuring a healthy funnel
Kleos is targeting 50 revenue generating data customers by the end of 2021/early Q1 2022, with annualised revenue of approximately US$7 million.
Operations: Scaling to meet growing demand
- An experienced C Suite with global repute fully staffed.
- Active recruitment to facilitate transition to independent board to prepare for complementary listing
- Growth in Luxembourg, UK & USA engineering teams & customer satisfaction team to both meet customer needs whilst maintaining OPEX that facilitate achievement of EBITDA positive status rapidly.
- Monthly ‘Insights’ interview series has been launched,
- Episode 1: tackling the technology and satellites’ constellations with Kleos CTO
- Episode 2; unveiling the data-as-a-business model with Kleos CRO
- All episodes can be found here.
- Conference speaking
- Chief Revenue Officer Eric von Eckartsberg talking at Satellite 2021 in Washington DC on 9 September 2021
- CEO Andy Bowyer speaking at Gabelli Funds’ 27th Annual Aerospace & Defense Symposium in New York on 9 September 2021.
Categories: Venture Capital