Israeli nanosatellite company Sky and Space Global (ASX: SAS) (SAS)'s share price jumped 15.4% today, after having risen even higher during trading. The share price of SAS, which provides nanosatellite technology-based communications infrastructure, finished the day's trading at A$0.105, reflecting a A$193 million market cap (NIS 522 million). The company's share price is still 45% lower than it was a year ago.
Today's surge followed a report by the company of success in a trial testing a communications network using its technology. The test, conducted in conjunction with Globalsat, a consortium of companies providing satellite communications services all over the Western Hemisphere, was based on three of SAS's nanosatellites.
According to SAS's report today, the trial, which was conducted in South America, demonstrated the company's capabilities to Globalsat's complete satisfaction and confirmed the compatibility of SAS's solutions with those of Globalsat and SAS's ability to provide a commercial solution. SAS added that its management was now in advanced talks on signing a commercial contract with Globalsat.
"We are satisfied that the commercial trial with Globalsat was a great success, and are excited about making progress in the commercial talks," said SAS CEO and managing director Meir Moalem. "Our successful trial was the first in the world to use nanosatellites for communications purposes in the Western Hemisphere, and we are confident that it will be followed by many others."
SAS raised NIS 27 million two months ago in a secondary offering on the ASX at A$0.12 per share, higher than the current price. That offering was oversubscribed, while the company simultaneously offered its existing shareholders shares at the same price. The financing round was aimed at completing the design, construction, and launch of 20 nanosatellites.
SAS operates from Australia, the UK, and Israel. The company was first listed on the ASX in May 2016 following a merger with a stock exchange shell, when it raised $4.5 million.
Israeli companies in diverse technological fields are listed on ASX, including Fluence, which deals in water treatment; Elsight, which provides secured information streaming; and Dotz Nano, which manufactures semiconductors.
ASX was founded in 1987 following a merger between a number of local Australian stock exchanges. 275 foreign companies are listed on ASX, including 56 from New Zealand and 17 each from Israel and Singapore.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018