Kleos Space (ASX:KSS) - CEO, Andy Bowyer - The Market Herald
CEO, Andy Bowyer
Source: Paperjam
  • Kleos Space (KSS) has announced a $3 million placement and a strategic agreement with solutions specialist, Red Group Technologies (RGT)
  • 10 million CDIs will be issued under the placement, along with two million free associated three-year options, exercisable at 50 cents each
  • Red Group will integrate its analytics product suite with Kleos' data
  • RGT will also act as a reseller of the data and be given a discount depending on the revenue it generates over 12 months
  • Kleos Space has also advised its satellites will soon be launched on the Indian Space Research Organisation Polar Satellite Launch Vehicle
  • Its satellite missions are aimed at detecting illegal maritime activity that is generally hard to locate
  • Company shares have dropped 12.5 per cent and are trading for 31.5 cents each

Kleos Space (KSS) has received commitments from entities controlled by Kathmandu founder and Bellamy's Director, Janet Cameron to raise $3 million.

Under the $3 million placement, 10 million new, fully paid ordinary CDIs will be issued along with two million free associated three-year options exercisable at 50 cents each.

The placement will be conducted at 30 cents per CDI, which represents a 1.7 per cent premium to the 15-day volume-weighted average price to July 6. The CDI issue price represents a 16.67 per cent discount to the last traded price of the CDIs on July 3.

"I thank Janet for her continued support, the placement provides further security for Kleos Space as we move into an exciting period for our security holders," CEO Andy Bowyer said.


Kleos has entered an agreement with Red Group Technologies (RGT) to be an integrator of and channel partner for products from its offices in the Middle East and North Africa.

RGT is a U.S.-owned and operated specialist in C5ISR (Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance, and Reconnaissance) solutions.

Its suite of analytics empowers leaders and organisations to gather insights from historical information to create custom workflows and data visualisations to improve performance.

RGT will be entitled to one-month data at no cost for demonstration purposes. After the one-month period, the data will be provided with a guided price of €300,000 (roughly A$487,145) per annum.

The agreement doesn't have a fixed term and payment isn't guaranteed until certain specifications, end-use case and number of users are agreed.

RGT will also act as a channel partner of Kleos' data and will be given a discount based on the revenue it generates from customers over a 12-month period.

Scouting Mission

Kleos' Scouting Mission satellites are currently in India and awaiting the launch on Indian Space Research Organisation (ISRO) Polar Satellite Launch Vehicle (PSLV) C49.

The satellites will detect and geolocate maritime radio frequency transmissions to provide global, activity-based intelligence and allow governments and commercial entities to detect unclear imagery or targets out of patrol range.

In a nutshell, Kleos' space missions are aimed at uncovering hidden maritime activity like illegal fishing, smuggling and trafficking.

"This is a great opportunity that we believe provides substantial value to governments as they protect their borders and Exclusive Economic Zones from illicit trafficking and other illegal activities," RGT CEO Ron Demeter said.

Kleos' satellites will be in a 37-degree inclination orbit covering crucial regions such as the Strait of Hormuz, South China Sea, Australian coast, Southern U.S. coast as well as the East and West African coast.

"I am delighted that we at Kleos will be able to contribute data that is both unique and an exemplar of the quality required. This is the beginning of a long relationship with RGT," Kleos Chairman and Group Business Development Executive Director Pete Round said.

Company shares have dropped 12.5 per cent and are trading for 31.5 cents each at 1:40 pm AEST.


KSS by the numbers
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