Kleos Space (ASX:KSS) share price drops 6% as capital raising announced

The Kleos share price fell today after the company announced a placement to sophisticated and institutional investors.
The post Kleos Space (ASX:KSS) share price drops 6% as capital raising announced appeared first on Motley Fool Australia. –

Falling asx share price represented by man in chinos falling suspended in mid-air

The Kleos Space (ASX: KSS) share price has fallen 6.40% at the time of writing to 80 cents after a trading halt of the company’s securities was lifted. The company announced a capital raising today, which will consist of a placement to institutional and sophisticated investors. 

The Kleos Space placement

Kleos raised approximately $19 million from institutional and sophisticated investors at a price of 72 cents per share. This was a discount of 16.3% to the previous closing price of 86 cents per share. 

According to the company, the proceeds of the placement will be used for:

  • funding the company beyond the launch of its second cluster of satellites to end 2021
  • accelerating development of the company’s third cluster of satellites
  • sales and marketing
  • working capital
  • funding the costs of the placement

The placement will be conducted in 2 tranches with the first $7.2 million issued in accordance with the ASX listing rules and shareholder approval at a general meeting required for the remaining $11.8 million.

What else has Kleos been up to?

According to Kleos, the company successfully launched its first cluster of 4 satellites on 7 November 2020. The satellites will provide radio frequency data for its customers, allowing them to monitor activity in a number of maritime locations.

The Kleos satellites will detect maritime activity that, according to the company, is otherwise undetectable and includes uses such as defence and national security along with the intercept of criminal activity.

The company expects that the satellites will provide revenue from the first quarter of FY2021, with agreements already in place with the US Airforce, L3Harris Technologies Inc (NYSE: LHX) and multiple government entities. The annual licensing fees for the first cluster of satellites will be between $128,000 and $971,000 per license and the number of initial licenses targeted is around 130. Kleos expects growth in its subscriber base over time.

Kleos plans to launch its second cluster of satellites on the SpaceX Falcon 9 rocket in mid 2021, which it expects will provide an opportunity to generate further revenue.

About the Kleos share price

Kleos shares are up 433% from their 52-week low of 15 cent and up 158.06% since the beginning of the year. The Kleos share price is up 128% since this time last year.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Kleos Space (ASX:KSS) share price drops 6% as capital raising announced appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!