NewSat Limited (ASX: NWT; OTC: NWTLY – “NewSat” or “the Company”) has today announced the completion of a significant financing transaction, which is intended to give NewSat sufficient funds to progress the Jabiru Satellite Project to "financial close" or final investment decision. The financing is another important step in the realisation of NewSat's Jabiru Satellite Project and gives the Company the financial flexibility to progress the project expeditiously.
The financing is structured in three separate elements, all designed with the objective of maximising value for NewSat's existing shareholders. NewSat's objectives were to minimise dilution, introduce significant institutional shareholders to the register and to ensure that the structure preserved flexibility for the future export credit agency financing of the Jabiru Satellite Project.
1. Convertible Note ($1 million @ 100% premium to share price)
Well known Singaporean-based investor Khattar Capital has invested $1 million in a 5 year unsecured Convertible Note with a conversion price of 1.6 cents per fully paid ordinary share (“Share”) (an approximate 100% premium to the Share price). The note has a cash coupon of 14% and is convertible into Shares at any time during the term, subject to shareholder approval. The investor has a put right after 3 years.
2. Share Placement ($6.5 million @ 0.7 cents per share)
NewSat has completed a Share Placement to sophisticated and professional investors for $6.2 - $6.5 million at 0.7 cents per Share. This will add significant institutional shareholders to the NewSat share register, including Khattar Capital, New Zealand Funds Management, DAUN Consulting (Singapore) and other sophisticated investors and institutions. The investors also received one warrant for every two placement shares purchased. The warrants have an exercise price of 1.0 cent and expire five years from the date of issue.