Kleos Space, a space-powered Radio Frequency (RF) Reconnaissance data provider based in Luxembourg, today announced that it has entered into a binding term sheet for a €1.83 million debt instrument, to be issued in the form of secured convertible notes.
Following the agreement of these secured convertible notes, the procurement of Kleos’ second cluster of satellites can now commence and the launch in 2020 will be scheduled over the coming months. The second cluster will collect more data which should in turn offer an improved and higher value product for customers.
The first tranche of convertible notes will have an aggregate face value of equivalent €1.35 million and will be issued at a discount for an aggregate issue price of €1.22 million. They will also have an interest rate of 10% per six-month period, may be converted into CDIs (Credit Default Insurance) at an issue price of equivalent €0.305 per CDI at the choice of the investors and must be redeemed six months from the date of issue unless converted by the holder before then.
The maximum number of CDIs that may be issued on conversion of the first tranche notes is €2.96 million. The investors may choose to subscribe for the second tranche of notes which will have an aggregate face value of equivalent €673,000 and will be issued at a discount for an aggregate issue price of €612,000, and will otherwise be issued on the same terms as the first tranche of notes. The maximum number of CDIs that may be issued on conversion of the second tranche is €1,480,000. The investors will also be granted up to €917,000 options over CDIs with an exercise price of €0.245 per CDI and a three-year exercise period.
Andy Bowyer, CEO of Kleos, said, “This investment is targeted to enable us to accelerate business development and revenue generating activities. We will recruit additional product development engineers and strengthen the management team to assist with the delivery of our data products".
The multi-satellite Scouting Mission system will form the foundation of a constellation that delivers a global picture of hidden maritime activity, enhancing the intelligence capability of government and commercial entities when AIS (Automatic Identification System) is defeated, imagery is unclear or targets are out of patrol range. The first scouting mission is made up of 4x nano-satellites built by GomSpace in Denmark, each the size of a shoebox.