On June 30th, AAC Clyde Space (STO: AAC) announced a sale of new stock, generating approximately SEK 64.5 million ($6.8 million) in new capital. New investors purchased at 110 SEK per share, representing a 15% discount at the time of the offering. Of the 585,938 new shares issued, Sweden-based Nowo Global Fund led purchasers buying approximately 270,000 shares.
Previously, on May 28th, AAC Clyde announced that Spacemetric AB hit financial milestones related to AAC Clyde’s acquisition. For hitting these milestones, Spacemetric’s prior owners received 29,903 shares of AAC Clyde stock. Thus, AAC Clyde’s outstanding share count in five weeks grew from 5,891,835 to 6,507,676, diluting existing investors by 10.5%.
In a related investor update, CEO Luis Gomes uncharacteristically conveyed positive mood, claiming increased customer and investor interest in the company over the last few months. Apparently, several investors approached AAC Clyde requesting to invest. The investment requires no lock-up period meaning investor could immediately flip their shares for 17.6% profit. Gomes stated a lock up period signals the new investors will sell immediately at lock-up period’s end. According to Gomes, Nowo Global Fund is expected to remain a long term investor. Other unnamed current investors increased their holdings through the capital raise.
The proceeds from the share issuance will fund the expansion of AAC Clyde’s Data-as-a-Service (DaaS) segment. Specifically, the funding supports the deployment of VIREON satellites 3 and 4 (VIREON 1 and 2 are already under construction, with the first launching this year and the second next year). VIREON is AAC’s visible and near-IR earth observation constellation, and CEO Gomes said customers are waiting for data. The new capital will also support AAC Clyde’s VDES (VHF Data Exchange System) initiatives. Finally Luis Gomes stated the funding will enhance AAC Clyde’s competitiveness in European defense markets. The latter reason appears vague, with no specifics in either AAC’s press release or Gomes’s interview. This is uncharacteristic from Gomes who has built a reputation as a straight shooter.
AAC Clyde considered debt issuance but found such capital at current interest rates more expensive than through issuing new shares. Gomes added that AAC Clyde has received SEK 190 million in government grants since 2020, and he has visibility on SEK 190 million additional grants forthcoming.
An investor referenced that Gomes previously stated he would personally invest in AAC Clyde when “the time is right,” and asked if he still would do so. Also uncharacteristically of Gomes, he dodged the question.
Another question referenced an analyst projecting AAC Clyde’s 2025 revenue to reach SEK 450 million, asking if this was reachable. Luis Gomes responded he believes it is “reachable” but confirmed “double-digit growth” as AAC Clyde’s official forecast. Gomes stated being “in general” comfortable with that analyst’s projections. Although never mentioned, this is clearly a reference to Edison Group. Gomes did state that AAC Clyde plans to provide a DaaS segment revenue forecast at the end of Q3.
The market appears encouraged by these developments and has seemingly brushed off the dilution. AAC Clyde Space stock traded up 8% in the week following the new share issuance and is up 211% from its price one year ago.