Kleos Space Releases Operational Milestone; Government Concession Granted

Kleos Space S.A. (ASX: KSS) is a space-powered Radio Frequency Reconnaissance data provider, based in Luxembourg. The company on 29th May 2019 announced that it has been approved the Luxembourg Government Concession to operate and establish a satellite system in Luxembourg. The concession is needed to any subsequent satellite constellations and to operate and launch the Kleos Scouting Mission.

KSS has received a grant from Luxembourg government, as a private concessionaire, which accepts, a concession to operate and establish a satellite system. It will consist of a constellation of cubesat type satellites to gather data of geolocation from radio signals in the maritime VHF band. This geolocation data should spot activities such as maritime safety, arms/drug/people trafficking, illegal fishing, border security, and many more. The company has been authorised by the government to track activities in the outer space within the regulation.

The concession is within Kleos’ expected schedule, and the management of KSS considers it as an operational milestone.

Furthermore, the company recently announced that the Scouting Mission of KSS has been confirmed to be launched in August 2019. This launch will take place on a Rocket Lab Electron launch vehicle. The company also mentioned that groundworks for this Scouting Mission satellites are progressing well for the mission readiness. All four satellites have successfully cleared all the required checks by the Rocket Lab.

Q1 2019 Activities Update

The company had no debt and $4.45 million in cash as at 31 March 2019 and is funded through to the revenue generation stage after launch of the Scouting Mission satellites. The company had been provided €391,600 or AU$619,000 as a grant funding from the Government of Luxembourg in the month of February 2019. With this second tranche of the grant, the overall funding has come in a total of €1,076,900 or AU$1,705,000, as compared to a commitment of €1,958,000 or AU$3,100,500. Luxembourg is a big name as far as the space market is concerned, and the industry is projected to produce ~2% of its Gross Domestic Product.

Separately, KSS signed a non-exclusive commercial agreement with Victoria Falls Technology LLC in the month of March 2019. The company also mentioned that it has signed a non-binding MoU (Memorandum of Understanding) with ImageSat International N.V. (iSi), which is an Israeli-based geospatial intelligence company. This MoU has been signed to discover further avenues to utilise KSS expertise.

Financial Performance in FY18

The company incurred a net loss of €2,101,103 in FY18 as compared to the net loss of €183,494 in FY17. The company had total assets of €7,330,380 in FY18 as compared to €481,262 in FY17. Cash and cash equivalents as on FY18 stood at €4,260,974 as compared to €456,590 in FY17.

The stock has performed extremely well in terms of price movement. The stock has zoomed ~123% on YTD basis, whereas in the last three months, the stock has gained ~47%. At the current price of $0.230, KSS holds a market capitalisation of $25.06 million. The 52-week high and low range for the stock stands at $0.300 and $0.089, respectively.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report