Launch, page-47

KSS its getting very close to the main event, i would expect to see some real buying come in shortly and a well deserved rerate the market cap is simply too low here IMO SAS went to 300m~mc with no biz plan!! any way lets break it all down.

Highlights:

1. Kleos’ launch date has been confirmed for December 2019Launch multiple contracts secured / multiple programs & further contracts expected post launch / valuation undervalued relative to peers / Highly experienced management
2. Early adopter revenue contracts signed up to $5m - $3m from USA / $2m from South America
3. Former Managing Director for Airbus Intelligence South America, Pierre Duquesne managing South American Sales / US based Karyn Hayes Ryan 30+ years in US Gov intelligence and procurement for US Gov managing US sales
4. Signed partnership with L3 Harris (NYSE:LHX)(US$45bn Market Cap), Kleos has been placed on GSA Schedule to rapidly speed up US Government procurement cycle
5. Multiple US Air Force programs currently in progress with multi-million projects and funding potentialSigned agreements with other global leaders including Airbus Space & Defence, Ball Aerospace (subsidiary of Ball Corporate (NYSE:BLL) and Spire Global
6. Closest competitor is Hawk-Eye 360 – they recently raised $100m at a $300m valuation and are 6 months ahead of Kleos (same product, satellites launched 6 months ago, ~US$50m in contracts already for data)Kleos current Market cap is only $35m

Overview:

1. About:Kleos has developed a cluster of small satellites to deliver a global picture of radio frequency data to assist governments and defence players by improving their maritime intelligence.
2. Kleos’ satellite build is 100% complete with launch date confirmed for Q4 2019 (Launch partner is ISRO - Indian Space Research Organisation)

Commercialisation:

1. Signed partnership with L3 Harris (NYSE:LHX), $45bn US company, importantly placing Kleos on GSA portal for immediate access to 100’s of US Gov Agencies - https://www.l3harris.comGSA portal is used to pre-negotiate contracts for government agencies – procurement cycle is usually 2 years but L3 Harris has negated the cycle for Kleos - Every 10 customers captured will provide ~$10m revenue per year – with L3 Harris marketing KSS data on the portal we expect multiple contracts to occur from this deal$5m
2. revenue contracts already secured from major US Defence players, and South American defence agencies
3. MOU’s signed with leading global space and defence players to create higher value added products including Airbus, Spire Global and Ball Aerospace (NYSE:BLL

1. Valuation and Competitor:
   
2. Only competitor in the market, Hawkeye 360 recently raised US$70m at a US$200m Valuation in August and have already secured $50m of contracts since launch 4 months ago
3. Valuation Upside: Kleos currently has 106m shares on issue with a $35m Market Cap offering significant upside as they approach their launch