Ann: Response to ASX Price Query Letter, page-21

I wrote SAS prompting for a comment regarding when/if SAS intends to address funding and the plummeting SP. The response was as follows:

First of all, I thank you for being SAS shareholder and supporter, and apologize for the delay in response.
I and the founders/exec team are at World Space Business Week (WSBW) 2018 in Paris and it is a key global sat industry event. There could be a number of very positive commercial and financial relationships that come out of it, and we are aiming for that.

We remain fully on track for the launch of the first Pearl’s in mid 2019- no change to this. I was just in Australia the past week, providing updates on last year activities, achievements we had and the Pearls schedule which is progressing as expected.

We do understand and appreciate the market nervousness and concern to all risk capital right now, and the situation re SAS funding. We are working on this and believe to be closing some major commercial contracts as we have been over the past few weeks.

The company is in very good shape, and if there wasn’t the funding query I believe the market sentiment was different.
We are fully aware of this and working on it as priority 1.

Hope that helps.
Meir Moalem