Satellite Company Sky and Space Set to Raise Money for Nanosatellites27th Oct 2021
Virgin Orbit and Thorney Group are investors in Sky and Space, a satellite company. The enterprise is in the process of raising $15 million for a launch. Potential investors received terms of the convertible note priced at a 30% discount. This is the next phase of the pre-IPO process.
For every $5 that potential investors invest in the satellite company Sky and Space, they’ll get a free option attached. This will expire in 3 years, with the subsequent raising having a 20% strike price. It’s worth noting that CPS Capital is running the raise.
The business IPO is expected to take place in 6 to 18 months. But, the goal is first to raise between $25 to $50 million in pre-IPO rounds.
Satellite Company Sky and Space Pre-IPO Raise
The enterprise whose leading investors include Virgin Orbit plans to raise $25 million. The amount will go towards manufacturing and launching 16 nanosatellites. In addition, this will go towards tech advancement, R&D, plus sales and marketing.
The 16 new nanosatellites will bring in cash flow to fund the other constellation of 96. At the moment, the enterprise has 3 crafts in LEO. The business specialty is the design and production of crafts for telecommunication networks.
In 2020, the enterprise got an injection of capital from Thorney and Virgin Orbit, its primary shareholders. The money eliminated a debt of $4m and $151 million for other liabilities and commitments.
The cost of production and launch is much lower now, with each craft generating revenue of up to $98 million. According to the satellite company Sky and Space, the amount has gone from $1.5 million to $350,000.