I suggest reading the latest Spire quarterly results if you haven’t already. It might help explain why I believe what you’re saying is a delusional fantasy in my opinion. No offence intended. If you see what Spire have done in 10 years it is really impressive in my opinion. They are at $100mUSD in ARR. Growing at 30%. Over 100 Satellites in orbit and very few satellite write offs. They’ve done incredibly well from a technical perspective and delivered huge growth in top line revenue.
However, look at their market cap. Approximately $100mUSD. That’s 1 x ARR. NYSE has issued a share price warning. They are doing all they can to get cash flow positive in 12-18 months because that is what the market demands.
You’re suggesting it would be a bargain basement price for Spire to pay $50m+ (at a 40c share price) to buy no ARR and add significantly to their operational losses? I personally can’t see a planet on which this would be welcomed by Spire shareholders.
If you use the same 1 x ARR multiple that Spire is valued at then what would the Kleos share price be?
