SAS (ASX) Friday the THIRD ?

Originally posted by Niftyw: ↑

Just checked it says withdrawal up until 5pm 16th May and nothing about 100% pull out or anything about 13th May. A capital raise can happen very quickly, they might even be working on it now, who knows, otherwise there is alternative finance which may not be a bank loan. I think alternative finance is someone partnering or solely investing - not really sure. I am pretty sure no directors tomorrow though.
I am sure they are working on finding a solution.
If they lose 50% on withdrawal that is enough to keep them going until they raise the rest. I can not find anything that says if less than 90% that everyone must withdraw.

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You have to mail in your withdrawal papers. So that happens on May 14 at the latest with registered post. You need a day to consider the new directors. They can't count on all investors being hacks.

On finance, they say the are working on a term sheet. A term sheet is essentially an MOU for financing. It's not the money. There will be months of negotiation after that to secure any sort of debt.

If they have less than 90% then they must sell more capital, as per the supplementary prospectus commentary. If they get 100% then they continue on as normal, secure debt financing and launch in 2020:

"The Company currently has sufficient capital to fund its ongoing operations forapproximately 2 months. If the Priority Offer and the Tranche 2 Placement are fullysubscribed, the Company will be able to undertake its intended business plan for thelaunch of the first batch of operational satellites by early 2020 without further delays.If the Priority Offer and the Tranche 2 Placement are subscribed to 90% or less, theCompany will need to undertake a further capital raising, or seek alternativefinancing, in order to execute its current business plan without changes."

Th alternative financing does not refer to the debt financing described in the quarterly cash report. That debt is to launch sats ("Negotiations with US debt financing for launch are progressing, with a term sheet being finalised."). The debt referred to in the supplementary prospectus is to keep the lights on.

It is absolute backs against the wall time for SAS. Either a Hail Mary tomorrow or it's over. Plus, they only have until May 9 to sign a new agreement with GOM or the recent Heads of Agreement signed with them expires ("SAS and GomSpace have agreed to finalise their negotiations on the new 6U Agreement andthe Pearls Agreement within 30 days." Announcement dated April 9). That HoA includes this condition "Advance payments and financial assurance for payments to be agreed for the project."

So SAS must announce directors, find money to assure GOM and retain at least 90% to stay in business. All within the next 14 calendar days. Luke Skywalker hit that 2 metre exhaust port with a photon torpedo so I guess anything is possible. But I think Luke had better odds, unfortunately.