Astrocast gets a convertible loan valued at $17.5 million from Thuraya, high enough to mean the Abu Dhabi operation has a substantial stake in the Swiss company.
There is also an extension to a technical agreement that started in 2019.
Fabien Jordan (pictured), founder and CEO of Astrocast, said: “Collaborating on creating new products and applications and leveraging the Thuraya distribution network will expedite the expansion of our customer ecosystem.”
Astrocast’s shares are quoted on Euronext in Norwegian kroner, giving it a market cap of 287 million kroner this morning – equivalent to $27.92 million. This implies the loan is worth almost 63% of Astrocast’s current valuation.
In order to carry out Thuraya’s investment in Astrocast, the Swiss company will issue a convertible loan to Yahsat for in-kind investment.
The loan carries an interest of 8% and has a term of 45 months from issue. The principal plus any interest can be converted into shares in the company, at a premium to market price at issue date.
In January the Swiss company, based in Lausanne, launched four low Earth orbit (LEO) nanosatellites on board a SpaceX rocket, bringing its total fleet in service to 18 satellites, specialising in IoT operations.
The company focuses on low-power wide-area connectivity solutions for industries such as transport and logistics, oil and gas, utilities, mining, forestry, agriculture and maritime. Last year it merged with Netherlands rival Hiber.
Ali Al Hashemi, group CEO of Yahsat, said: “We are pleased to further strengthen our relationship with Astrocast as we mutually explore ways to expand our service offering across [geosynchronous] and LEO assets to unlock greater growth potential.”
Jordan said: “Our partnership with Thuraya has been solid for the past four years, and their continuous support is incredibly important to us.”
Al Hashemi said: “We look forward to working together with Astrocast to execute this strategic investment which highlights our continued belief in the outsized impact of the IoT sector for the space and satellite industries.”
In order to carry out Thuraya’s investment in Astrocast, the Swiss company will issue a convertible loan to Yahsat for in-kind investment of $17.50 million.
The loan carries an interest of 8% and has a term of 45 months from issue. The principal plus any interest can be converted into shares in the company, at a premium to market price at issue date.
