Sky and Space Global (ASX: SAS) has been one of the most watched small caps on the ASX. It emerged from a reverse takeover of Burleson Energy and in 2017 was above 20 cents.

But as the Israeli satellite play has struggled to make revenue its share price has fallen and was most recently at 2.8 cents.

The company wants to raise another round of funding and has appointed two Australian-based directors to replace Michael Malone and Di Fulton, who resigned in April. Foreign companies need at least two directors based in Australia in addition to a locally-based ‘mediator’ with the ASX.

Sky and Space has extended its suspension several times. Its most recent extension was granted yesterday until Monday May 27.

SAS has spent $4.6 million this year and it anticipates churning through another $1.6 million this quarter.

But in a letter to shareholders this morning, Sky and Space chairman Meir Moalem asserted he was close to securing debt funding.

“Negotiations with US debt financing for launch are progressing, with discussions on a term sheet at an advanced stage,” he said.

Moalem said he had reduced executive remuneration by 50 per cent and reminded shareholders the directors invested $300,000 in its most recent placement ($200,000 of which was by Maolem personally).

In regard to the other reason for the company’s suspension, lack of local directors, he said the process “continues to move forward”.

The bigger picture

Moalem used the update to assert the promise of the company.

“We are doing things that no-one else has done before, and have progressed at a very rapid pace over the past few months,” he said.

“The foundations we have now put in place, and are putting the final touches on, will ultimately make Sky and Space Global a dominant player in the space market with a strong and attractive global business.”

“Recent company newsflow has unfortunately not focused on the significant technology inroads we have achieved and I would like to highlight just a few in this letter.”

Moalem reminded shareholders the satellites were to be launched in early 2020 and they were ideally placed now having two providers – Arianespace SA and Rocket Lab.

He also reminded shareholders the company had a lot of projects to manage:

“We are managing and running over 20 different projects – from nanosatellite development, manufacturing and testing; ground control systems and ConOps; constellation simulator; collision avoidance algorithms; ground terminals; advanced communication protocols; launch support; product development and management; marketing and sales efforts and activities; IT systems and infrastructure; spectrum coordination and registration; commercial partnerships initiation and more.”

Sky and Space have no shortage of customers and according to the company, 16 of them wanted to increase the value of their current contracts, including BT Telecom.