ASX-listed Kleos Space files for bankruptcy

Kleos Space, a Luxembourg-based developer of geospatial intelligence solutions financed by Australia-based PURE Asset Management, has announced its intention to declare bankruptcy after failing to secure more financial backing.

In a Filing to the Australian Securities Exchange, where Kleos’ shares are listed, the company said it failed to secure the required commitments to meet the conditions of a loan facility and that its financier has decided not to extend existing loan terms or provide additional credit while calling in the loans and “other accrued amounts immediately due and payable.”

“In these circumstances, the company’s board has had no alternative but to acknowledge that the company is unable to meet its ϐinancial commitments as they fall due, and that there is no prospect of viable alternative ϐinancial accommodation and will, accordingly, petition the relevant commercial district court in Luxembourg for a bankruptcy adjudication,” Kleos said.

Kleos, which gathers geospatial data for speciϐic missions and sells the data to users such as governments and defence agencies, has so far launched four clusters of satellites in orbit. Kleos’ first satellite cluster, the Scouting Mission, successfully launched in November 2020 and performed as a test and technology demonstration whilst collecting data. The company’s second satellite cluster, the Vigilance Mission, successfully launched in June 2021 and its Patrol Mission launched in April 2022.

Kleos’ fourth cluster, the Observer Mission, was launched in January 2023.

According to the company, three of the clusters, each consisting of 4 satellites, are in orbit with the Vigilance mission now operational while the Patrol and Observer missions are now completing commissioning and expected to enter service later this year. Kleos was one of several relatively high profile space startups to emerge in the past few years. It first listed its shares on the ASX in 2018, raising some $11 million.

Last August, it secured a $10 million debt facility from Pure.

However, its business, based on a data-as-a-service subscription model, has failed to bring the company towards profitability. The company booked a loss of €7.3 million on sales of €270,000 in 2022. In May 2023, it voluntarily suspended the trading of its ASX-listed shares.

According to Kleos, it is now preparing documentation to support its bankruptcy petition, which must be filed within 30 days.

Tony Chan, Commsday