The Kleos Space SA (ASX: KSS) share price is edging lower today despite announcing a new agreement with rideshare provider Spaceflight Inc. At the time of writing, the satellite infrastructure company’s shares are down 1.6% to 60 cents.
What did Kleos announce?
The Kleos share price in the red during early-afternoon trade as investors seem unmoved by the company’s update.
According to its release, Kleos advised that it has signed a new contract with Spaceflight. The agreement is to launch its third cluster satellite, codenamed the ‘KSF2 Polar Patrol’ mission. The launch is expected to take place sometime in December 2021 aboard a SpaceX Falcon 9 rocket.
Kleos revealed that the four KSF2 satellites will enter a sun-synchronous orbit (SSO) at a height between 500 kilometres to 600 kilometres. An SSO travels over the Earth’s atmosphere in the same ‘fixed’ position relative to the sun.
The KSF2 satellites will be deployed to complement the company’s first and second existing satellite clusters. This will allow Kleos to increase its coverage over vast areas over key maritime interests. As such, this enables improved detection of illegal activity like drug and people smuggling, illegal fishing, and border and security breaches.
The company also noted that its second satellite cluster, the Polar Vigilance mission, is on track for the mid-2021 launch. This will also be boarded on a SpaceX Falcon 9 rocket.
Kleos Space CEO Andy Bowyer touched on the company’s progress, saying:
The launch of our third satellite cluster will further improve the frequency and value of Kleos’ radio frequency intelligence data, generating higher-value datasets and further tiered subscription licence options. While Kleos is targeting a constellation of up to 20 satellite clusters, each cluster will increase the volume of data that can be sold and provide further insights as to activity in key areas of interest for our customers.
While we progress, our constellation roll-out with the launch of our second and third satellite clusters, we continue to focus on securing and building a new subscriber base. Data delivery from the Scouting Mission satellites allows us to commence revenue generation from early adopter and test contracts.
Kleos share price review
The Kleos share price has soared 146% higher over the course of the past 12 months. The company’s shares hit a low of 15 cents last March before gradually moving higher. In November, its shares reached a record high of 92.5 cents.
Based on current valuations, Kleos commands a market capitalisation of around $98.5 million.