
Artistic rendition of the Jabiru-1 satellite.
Lockheed Martin, NewSat’s appointed satellite manufacturer, is currently procuring the critical components of the satellite on an accelerated basis, hence the need to raise capital earlier than expected. NewSat has already commenced contributing funds to the procurement, and will continue to contribute in accordance with the satellite procurement agreement. In addition, NewSat will also make a payment to Arianespace for their provision of launch facilities for the satellite. NewSat has currently applied to the French and U.S. based export credit agencies for funding for Jabiru-1. Recently, preliminary advice was received indicating the project qualifies and is on track for funding commitments from both COFACE and U.S. Ex-Im Bank. Final approvals are expected early in the second quarter of 2012.
In commenting on the capital raising, Adrian Ballintine, NewSat Founder and CEO, said, “With demand for satellite communications constantly growing and NewSat’s Jabiru Satellite Program continuing to achieve major launch milestones, it’s a great opportunity for our shareholders to increase their participation in NewSat. Commencing earlier than expected is a bonus because our completion date drives revenue earlier. The construction of the Jabiru-1 satellite is underway with Lockheed Martin and funds raised will ensure the project stays on track for launch in the second half of 2014 with Arianespace. So far we have secured US$346 million in prelaunch customer contracts and have a promising US$575 million sales pipeline, all of which have assisted us to successfully move to the next stage of export credit funding with U.S. Ex-Im Bank and Coface.”