Jabiru-1 Satellite Communications Program Won Foreign Investments
NewSat closed the capital shortfall related to its Jabiru communications satellite program with the help of foreign investors.
- (1888PressRelease) April 18, 2012 - NewSat CEO Adrian Ballintine announced that the company completed the needed capital funds appropriated for the construction of its first satellite, Jabiru-1. The equity funds from foreign investors completed the Rights Issue which started in December last year in line with Exception 3 of Listing 7. Offered at 60 cents/share, the equity has the same terms as the $20 million issues announced last February. The Board of Directors confirmed this was the last capital to be raised on equivalent terms of the 2011 entitlement offer.
The independent satellite communications carrier will use the capital to pay Lockheed Martin for the manufacturing of the Ka band satellite. Currently on its 4th month of construction, the satellite is being built on a short timeline. NewSat is paying $1 for $5 in the early phases of the project to speed up things.
The latest interview with NewSat CEO Adrian Ballintine revealed how well NewSat was performing in terms of financing and international branding. The local teleport service provider attended the ASX Roadshows in New York and London where it got a chance to showcase its latest satellite communications project.
The ASX events were attended by mining, oil and gas companies seeking international business partners and customers.
Ballintine said NewSat closed the capital shortfall owing to investors in the London and New York ASX conferences. The events showcased other Australian companies with market capitalization between A$150 million to A$2 billion. NewSat was the smallest company to join the event, yet it got favorable responses from the audience and several foreign funds.
Seventy-five percent of the cost of Jabiru fleet will be covered by debt financing. The other 25% will be funded by equity. NewSat is seeking credit approval from French government-backed COFACE and the Export-Import Bank of the US.
"We have been aggressively pursuing the build of our satellite with Lockheed Martin, and they are generously supplying and building prior to us receiving the imprimatur from the Ex-Im bank," said the CEO.
Ballintine hopes the Jabiru-1 satellite communications project will be completed earlier than planned now that the capital requirements have been fully satisfied.
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