Kleos Space S.A. announced that it has entered into a binding terms sheet for the private placement of secured term loan for the gross proceeds of AUD 10,000,000 on July 4, 2022. The transaction included participation from new investor, Pure Asset Management Pty. Ltd. The proceeds will be received in two tranches, AUD 6,000,000 in first tranche and AUD 4,000,000 in second tranche.

The secured term loan will have maturity period of 4 years. The secured term loan will bear variable interest rate 12% per annum until monthly revenue for three consecutive months exceeds €1,200,000(AUD 1,826,724), 10% per annum once monthly revenue for three consecutive months exceeds €1,200,000(AUD 1,826,724) and 8.50% per annum once monthly revenue for three consecutive months exceeds €2,000,000(AUD 3,044,540) or 15% per annum while a review event or event of default is subsisting. The company will also issue unlisted detached warrants in two tranches, tranche 1 warrant shares comprised of the number of shares equal to the tranche 1 loan plus 25% of the tranche 2 loan divided by the tranche 1 exercise price, as calculated at the time of issuance, with exercise price being the lower of AUD 0.85 or 70% premium to the trailing 20-day volume weighted average price on the day immediately prior to the facility being announced on the ASX.

tranche 1 warrant shares comprised of the number of shares equal to 75% of the tranche 2 loan divided by the tranche 2 exercise price, as calculated at the time of issuance, with the exercise price being the lower of AUD 1.20 or 70% premium to the trailing 20-day volume weighted average price immediately prior to the utilization date in respect of tranche 2.