Ann: BUR to acquire Nano Satellite Technology Company, page-52

Coming back to this today, the deal is in fact frightening in my opinion. It would appear to be capitalising on the recent love of RTO for novel tech and disruptive products - with little regard to any fundamentals.

Working through the announcement.

• Acquiring 100% of shares in Sky and Space Global. The company was only incorporated a week or so ago: https://beta.companieshouse.gov.uk/company/09887327
• Heaps of big numbers about the market. No numbers on cost, revenue, profit or margin potential

Its vague, speculative and high risk. Nothing wrong with that necessarily - most back-door listing are.

The price however is what staggers me.

• $100 000 upfront in cash for this newly incorporated business.
• 3.7 billion shares for the ownership of the company ($33 million at the current price)
• 1 billion more shares if they actually build a satellite ($9 million more)
• 500 million more if they effectively launch 2 satellites (another $4.5 million)

That might sound like a cheap satellite, but remember that's not the price being paid to actually develop the thing, this is the price for the privilege of paying these guys to spend shareholders money to try and build one!


Just my view, others may have a different one - but worth looking into the little information released in my opinion.