Space-bound nanosatellite maker Sky and Space Global (ASX: SAS) saw investor sentiment reach a new high today after the company announced it had successfully completed commercial testing under its operational evaluation agreement with Globalsat Group.
Sky and Space Global agreed a deal with Globalsat earlier this year that would eventually see its nanosatellites deployed as part of Globalsat’s M2M and IoT services in the region.
The deal included a two-phase testing stage including both lab testing and commercial field testing before discussions to agree commercial terms could proceed.
According to the nanosatellite maker, its team conducted the operational testing in Central and South America together with the Globalsat Group team, to the full satisfaction of both parties.
Sky and Space Global said completion of both stages validates the compatibility of its technology and compliments the company’s broader business model as a whole, with an agreement to formalise the provision of narrowband satellite communications for Globalsat now imminent.
A formal deal will mean Sky and Space Global will provide its telecommunications infrastructure to Globalsat and therefore serve millions of Central and South American customers with mobile connectivity and IoT services — a move that’s been called a “game changer” by Globalsat’s CEO Alberto Palacios.
With this final testing phase complete, Sky and Space Global said that its management team is now in “advanced commercial discussions with Globalsat, with the objective to work on a commercial agreement for Globalsat to harness its equatorial constellation narrowband communication network.
“We are pleased that the commercial testing with Globalsat was a great success and excited that we are now actively progressing commercial discussions. Our successful test was the world’s first operation using a nanosatellite for communication purposes in the American continent, and we are certain many more will follow,” said Mr Meir Moalem, CEO of Sky and Space Global.
“The tests with the 3-Diamond nano-satellites were widely successful. We believe that when the Sky and Space 200-satellite constellation is complete and operational it will be a game-changing technology that can transform narrowband satellite communications,” said Mr Palacios.
“Globalsat is ready to advance our relationship with SAS to agree on a commercial arrangement, which will see us deliver mobile connectivity and IoT services to Latin and Central America,” he added.
Today’s news of Sky and Space Global successfully completing the testing stages and entering firm commercial negotiations saw its shares rise by around 12% up to $0.10 per share.