Kleos Space (ASX:KSS) in trading halt after breakthrough news

Kleos Space is in a trading halt ahead of capital raising. The company has also announced a significant breakthrough in its space business.
The post Kleos Space (ASX:KSS) in trading halt after breakthrough news appeared first on Motley Fool Australia. –

Kleos Space SA (ASX: KSS) today asked the ASX to halt trading on its shares pending a major announcement. The request comes alongside other news released by the company this morning, in which it announced a significant breakthrough. Its first cluster of 4 satellites has entered orbit after a successful launch mission.

Kleos Space’s shares will remain in trading halt until the start normal trading on Wednesday, or when the announcement is released to the market.

What does Kleos Space do?

Kleos Space was founded in 2017 by experienced space engineers to develop space enabled Data-as-a-Service (DaaS) concept, and disruptive space technologies. It launches and operates satellite infrastructure that is meant to generate commercial intelligence, surveillance, and reconnaissance (ISR) and geo-services data. Kleos then sells this data internationally via subscription to government agencies, the intelligence community, or businesses.

The company listed on the ASX in 2018, and has a current market cap of $112 million.

What was the announcement today?

Kleos Space announced a major breakthrough today with 4 of its satellites entering orbit following a successful launch mission from India on Saturday.

The company advised that contact has been made with all 4 satellites. It claims that it is the first company to fly clusters of 4 satellites to geolocate radio frequency transmitters. This geolocation data will enable governments and other organisations to detect hidden maritime activity such as drug and people smuggling, piracy and illegal fishing, as well as identify those in need of search and rescue at sea.

The company also said that the 37 degree-inclined orbit provided extensive coverage over crucial areas of interest such as Strait of Hormuz, South China Sea, East/West Africa, Southern Sea of Japan, northern Australian coast, and the Timor Sea. After this successful deployment, the company says that the commissioning phase has now started. 

Kleos Space CEO Andy Bowyer says of this breakthrough:

We are very excited to have our first cluster of four satellites in orbit. It is only three years since Kleos Space was founded.

This launch marks an important milestone for Kleos and will – post the satellite commissioning phase – enable the collection, then delivery of our commercial and independent data to government agencies, the ISR community and organisations interested in locating threats, assets or those in need of search and rescue.

I again extend my thanks to our entire team and to our security holders that have invested in Kleos which now enters its next stage of growth.

Why did Kleos Space request a trading halt

In its request to the ASX, Kleos Space said that it asked for a trading halt due to the company considering a significant issue of securities for purposes of a capital raising.

Information about the issue, including the price at which a potential placement would be undertaken, may have a material effect on the price or value of the company’s securities. The capital raising and book building process is scheduled to take place over the course of two trading days.

How has Kleos Space share price performed in 2020

The Kleos Space share price began the year trading at 30 cents. The share price was halved to 15 cents in March at the onset of the coronavirus pandemic. It has since climbed exponentially to today’s level of 86 cents. 

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The post Kleos Space (ASX:KSS) in trading halt after breakthrough news appeared first on Motley Fool Australia.

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