Kleos Space S.A., a space-powered Radio Frequency Reconnaissance data-as-a-service (DaaS) company, has entered into a €3.41 million (approximately US$3.7 million) secured loan agreement with Dubai-based family office Winance to progress its commercialisation plans and to redeem existing convertible notes. The agreement was announced on 18 February 2020.
“This funding provides Kleos with working capital to progress the development of our second cluster of satellites while we await revenues from our Scouting Mission satellites,” said Andy Bowyer, CEO of Kleos Space. “Luxembourg has a successful economic partnership with the UAE, developed over the past 20 years. This collaboration provides Luxembourg-based organisations operating in the space sector, such as Kleos Space, with access to investment and financing opportunities.”
“We are pleased to collaborate with Kleos Management by providing a funding commitment that will enable them to expedite their operations especially as the company prepares to launch its first of many satellites,” Director & CFO of Winance, Waqas Ibrahim said. “This new partnership is in line with Winance’s vision of investing in proficient and progressive thinking management teams. We are convinced that this collaboration can serve as a springboard for both our companies in the GCC, Australian and Luxembourg markets. Kleos technology has never been more relevant than today in addressing a real world need and has attracted interest from governments and private organisations.”
Kleos will use the funds to progress the development and launch of its second cluster of satellites, increase its international business development presence within the defence and security sector and repay existing convertible notes issued on 12 September 2019 and 20 December 2019.
Kleos will generate revenues after the launch of its Scouting Mission satellites from Chennai, India. This initial satellite cluster is the foundation of a larger constellation which will geolocate radio frequency transmissions to provide global activity-based intelligence irrespective of the presence of positioning systems, unclear imagery and targets are out of patrol range.
Marc Serres, CEO of the Luxembourg Space Agency, said: “Luxembourg and the UAE share the same commitment to support the economic development of the commercial space industry. The agreement between a Luxembourg-based company and a Dubai family office shows that our bilateral cooperation with the UAE is successful when it comes to developing high technology space products and services through financing instruments tailored to meet the needs of private companies.”
The agreement ensures Kleos is well-funded to execute its commercialisation plans while awaiting revenues from early adopter contracts. The agreement is for 12 months, or longer if agreed by both parties.