The funds were raised through strategic international institutional investors to be used as payment to American satellite builder, Lockheed Martin.
The Jabiru Satellite Program’s fleet of satellites will deliver high-powered Ka-band coverage for high demand government and enterprise environments around the world.
NewSat founder and chief executive officer, Adrian Ballantine, said the additional $7.5 million forms the last part of the capital raise.
“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,” he said.
NewSat’s role is to pay almost $1 for $5 in the early stages of development so that the project can “advance as quickly as possible,” a move that has meant that the satellite is now in the fourth month of the build.
Ballantine attributes the additional funding to the roadshows that NewSat has held in London and New York in the last few weeks.
“The final part of the capital raising encompasses people who heard us speak in London and New York a few weeks ago, and they have decided to invest,” he said. “And as a result of that, we’ve now closed that capital raising and we’re able to continue that project ahead of time.”
When funding a space project, Ballantine highlights that it is comprised of dept and equity.
“Essentially for a company like us, about two thirds is funded by dept and one third by equity,” he said. “Two thirds of dept is put up by the Ex-Im bank, if it’s an American provider.”
NewSat will be employing a French company, Arianespace, to launch the satellite, but the additional funding will be exclusively used for Lockeed Martin to “keep the fires burning” so the building of the satellite continues.
“They put in a bit, we put in a bit and we all keep it going,” Ballantine said.
The Jabiru satellites will initially focus on the Middle East, Africa, Asia and Australia, with longer-term coverage extending into the Pacific Ocean and the Americas.
They will provide “new” capacity to high demand regions, unlocking bandwidth capacity and coverage. “Raw” capacity and flexible payloads will satisfy partners’ business requirements, enabling them to build and manage their own networks.