GomSpace and Sky and Space Global Have Entered Into a "Heads of Agreement" for One New Agreement and Replacement of the Original Agreement Entered Into in 2017 (as Amended).
STOCKHOLM, April 8, 2019 /PRNewswire/ -- GomSpace Group AB ("GomSpace" or the "Company") and Sky and Space Global have conducted recent evaluation discussions regarding the provision and manufacturing by GomSpace of an additional constellation of nanosatelittes for global services for Internet of Things (IoT) and Machine to Machine (M2M). In connection therewith, in order to reflect changes to the original project, the parties have also discussed changes to the original agreement and have now agreed on the principle terms for the provision and manufacturing by GomSpace of an additional constellation of nanosatelittes under a new agreement and the principle terms for replacement of the original agreement entered into in 2017 (as amended). A replacement of the original agreement is necessary for the continued cooperation under the original project.
Background
In 2017, GomSpace entered into a procurement agreement with Sky and Space Global regarding the development and qualification of a nanosatelitte platform and the subsequent production and delivery of nanosatellites from GomSpace A/S to Sky and Space Global. In the same year, the parties entered into an addendum according to which the original order was increased to encompass additional development of the capabilities of the nanosatellites. Further, Sky and Space Global has an option (but no obligation) to order CSL Modem Implementation. The total contract value of the procurement agreement is approximately EUR 64.5 million excluding the option to add CSL Moden Implementation which is worth an additional EUR 1.4 million. As of today, a total of approximately EUR 7.2 million has been paid under the original agreement (for the development of the platform until critical design review, progress on advance communication payload and purchase of long lead items).
The parties have conducted recent evaluation discussions regarding the provision and manufacturing by GomSpace of an additional constellation of nanosatelittes. In connection therewith, in order to reflect changes to the existing project, the parties have also discussed changes to the original agreement and have now agreed on the principle terms for the provision and manufacturing by GomSpace of an additional constellation of nanosatelittes under a new agreement and the principle terms for replacement of the original agreement entered into in 2017 (as amended). A replacement of the original agreement is necessary for the continued cooperation under the original project.
Principle terms for new agreement
- Provision and manufacturing by GomSpace of a new constellation of nanosatelittes.
- Delivery in two batches (second batch optional for Sky and Space Global).
- First deliveries planned for 2019 and last deliveries in 2020.
- Total order value will range between approximately EUR 4 million to EUR 7 million (depending on number of satellities and final price).
- The technical specifications, statement of work, delivery schedule, and the commercial, payment and legal terms to be finally decided in a definite agreement expected to be entered no later than May 2019.
- Advance payments (EUR 550,000) and financial assurance for payments to be made by Sky and Space Global for GomSpace thoughout the project.
- Conditional upon secured financing by Sky and Space Global and the parties reaching an agreement on changes to the original agreement entered into in 2017 (as amended).
Principle terms for changes to the original agreement entered into in 2017 (as amended)
- Provision and manufacturing by GomSpace of nanosatelittes.
- Delivery in batches similar to original agreement, that would be aligned to the project under the new agreement (see above)
- Total order value is depending on several options including development, services and choice of satellites and will therefore range between approximately EUR 48 million and EUR 70 million.
- The technical specifications, statement of work, delivery schedule, and the commercial, payment and legal terms to be finally decided in a definite agreement expected to be entered no later than May 2019.
- Advance payments to be made and security for payments to be provided by Sky and Space Global.
- Conditional upon the parties entering into the new agreement (see above).
- A replacement of the original agreement is necessary for the continued cooperation under the original project.
"We are very happy that we can support Sky and Space Global with this Global Coverage constellation for IoT and M2M solution, and that we find a new way to corporate on the original project", says Niels Buus, CEO of GomSpace.
About GomSpace Group AB
The Company's business operations are mainly conducted through the wholly-owned Danish subsidiary, GomSpace A/S, with operational office in Aalborg, Denmark. GomSpace is a space company with a mission to be engaged in the global market for space systems and services by introducing new products, i.e. components, platforms and systems based on innovation within professional nanosatellites. The Company is listed on the Nasdaq First North Premier exchange under the ticker GOMX. Sweden AB, info@fnca.se, +46-8-528-00-399 is the Company's Certified Adviser. For more information, please visit our website on www.gomspace.com.
Miscellaneous
This information is information that GomSpace is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, 8 a.m. CET on April 8, 2019.
For more information, please contact:
Niels Buus (CEO)
Tel: +45-40-31-55-57
Email: nbu @ gomspace.com
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