ASX listed Burleson Energy have easily raised $4.5m to complete the acquisition of Israeli based nano-satellite company Sky and Space Global or SSG.
The company hasn’t wasted any time in putting the money to good use with the announcement this week that respected Danish nano-satellite manufacturing partner Gom Space, has now commenced construction of SSG’s first three nano-satellites.
Nano-Satellites, which are a relatively new technology, are effectively mini satellites that in some cases can fit into the palm of your hand.
They are considerably cheaper to construct, more cost effective to launch and more efficient to provide ongoing maintenance for than traditional large satellites.
The Israeli team behind SSG are revered in the space business having built and successfully launched Israel’s first nano-satellite known as “Duchifat -1” in 2014 with the Herzliya Space Centre.
That satellite is still communicating back to earth today.
SSG is planning to launch their first three nano-satellites by mid 2017 and negotiations with launch providers are now at an advanced stage.
The company will use the launch of their first three nano-satellites to prove up the concept of creating their own global satellite telecommunications network that is capable of providing super affordable voice, messaging and data services to remote and other locations around the world.
Target markets also include the airline industry, the shipping industry and sections of remote countries that are otherwise not covered by traditional telecommunications services.
Burleson says the global satellite communications market is worth over $5b a year and is expected to be worth $10b by the year 2021.
SSG’s CEO Mr. Meir Moalem said,
“We are delighted to report that strong progress has been achieved within the first few weeks of the construction of our three nano-satellites and that we remain on track to launch these nano-satellites under our pilot phase by mid 2017. The launch forms a crucial step forward in our strategy to disrupt the multi- billion dollar global satellite communications market by providing a significantly cheaper platform for voice, data and instant messaging services.”
Post the recent capital raise which was undertaken at the equivalent of 0.4c, Burleson will consolidate the capital of the company at 2c per share.
