SYDNEY: Sky and Space Global Ltd (SAS) announced that Virgin Orbit will acquire a stake in the Company and enter into new strategic launch services and mutual reseller agreements to support future growth.
The quantum of the stake to be acquired by Virgin Orbit will be no less than 14.7% of the issued capital in SAS at an issue price of A$0.20 following the Company’s DOCA being effectuated and prior to the Company raising funds under a prospectus.
Upon completion of the stock issuance, the signing of the new agreements and the grant of options to Virgin Orbit, the previous A$55 million Launch Services Agreement (LSA) with Virgin Orbit will be terminated, with both parties to be released from all past, current and future obligations related to the LSA.
Virgin Orbit will also be granted 7 million three-year options in SAS, exercisable at A$0.40 each, and will also be entitled to appoint an observer to the Board of Sky and Space Global.
In addition, SAS and Virgin Orbit will enter into two new commercial agreements relating to launch services and mutual reseller arrangements. SAS and Virgin Orbit will sign a three-year, A$1million per annum launch services and consulting agreement, commencing 1 July 2021.
In addition, the two parties will enter into a Mutual Reseller Agreement, whereby Virgin Orbit will promote SAS’ services to its current customer base, and SAS will refer and resell Virgin Orbit’s launch services.
Commenting on the new agreement with Virgin Orbit, SAS Chairman Xavier Kris said: “We are delighted to have Virgin Orbit as a partner and shareholder as we progress the recapitalisation of the business and short-term commercialisation of our nano satellite communications technology”.
Sky and Space Global Limited is an ASX listed (SAS) satellite company regulated by the UK Space Agency with communications, satellite, and software industry expertise.