Artist's conception of NewSat's upcoming Jabiru-1 satellite.
...from international institutional investors. The equity funds form the completion of the Rights Issue announced in 2011 in accordance to Exception 3 of Listing Rule 7.1—the stock was issued at 60 cents. The terms are the same as the $20 million funding announced last February. The Directors informed the public that it was the last stock issuance on the equivalent terms of the 2011 entitlement offer.
The capital would cover progress payments to Lockheed Martin. The US-based satellite manufacturer is building the Jabiru-1 communications satellite, which is scheduled to be launched by Arianespace in 2014. The build is on schedule in month four of the initial construction timeline. The Australian satellite communications provider agreed to pay approximately $1 for $5 in the early phases of the construction to shorten the project’s timeline.
A recent interview with NewSat CEO Adrian Ballintine presented interesting updates on the Jabiru satellite communications program. The local teleport operator recently showcased its technical expertise and infrastructural resources at the 2012 ASX Roadshows in London and New York where it attracted strong interests from foreign investment funds. NewSat is also tapping on credit funds from French government-backed COFACE and the Export-Import Bank of the US to finance the construction of the satellite. Two third of the funding for the satellite communications fleet comes from debts, and the rest is from equity. “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 Ballintine. The CEO also said that NewSat was able to complete the final part of equity scheme owing to investors at the London and New York ASX conferences. Australian companies with market capitalization between A$150 million to A$2 billion were presented in those events. Now that the capital fund raising has been completed, NewSat can complete the project earlier than scheduled, Ballintine said.