UrtheCast Close to Securing Funding for EO Constellation
In a recent update on its ongoing corporate initiatives, UrtheCast stated it has entered into an agreement with an institutional investor for $175 million in financing for the company’s UrtheDaily constellation. UrtheCast is currently working closely with the investor to finalize closing documentation, with a target completion date for the financing extended to the end of January.
With signed binding agreements for both data subscriptions totaling in excess of CA$100 million ($79.9 million) and a contract to build the UrtheDaily Constellation, UrtheCast continues to target the commencement of the UrtheDaily operations for 2020.
The company continues to focus its efforts on securing near-term contracts for the Synthetic Aperture Radar (SAR) accelerator missions, including obtaining the necessary export applications. Those contracts are meant to accelerate the operationalization of the company’s SAR technology and the start of its data services businesses. UrtheCast continues to await final approval of the financing condition by the customer’s government agency for the previously announced SAR XL contract. As a result of the focus on the SAR Accelerator missions, the timeline for the OptiSAR Constellation has been pushed out to 2023 at the earliest.
UrtheCast also announced in its third quarter earnings release that a delay in the award of a major contract impacted revenues. Accordingly, UrtheCast expects annual revenue and adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) to be in the range of CA$40 million ($31.9 million) and negative CA$5 million ($3.99 million), respectively.