AAC Clyde Space (AAC) Investor Update summary

Capital raise and transaction details

• SEK 64.5 million will be raised through a directed share issue of 585,938 shares at SEK 110 per share, a 15% discount to the closing price on June 27, to institutional and qualified investors including Nowo Global Fund, which will own about 4.1% post-transaction.

• The share issue results in a dilution effect of about 9%, increasing outstanding shares to 6,507,676 and share capital to SEK 13,015,352.

• No lockup period is imposed, as investors are expected to be long-term holders.

• Transaction costs are estimated at SEK 3 million.

• Debt financing was considered but found more expensive than equity due to high interest rates and costs; management and board did not participate due to insider restrictions.

Use of proceeds and strategic focus

• Funds will accelerate the data and services business, especially the completion of the VIREON satellite constellation, expanding from two to four satellites.

• Additional investment will support growth in maritime intelligence services, including the INFLECION program and VDES constellation for maritime tracking and communications.

• Proceeds will also be used to develop customized solutions for the defense and security sector, particularly in Europe, responding to increased demand.

• The Sterna constellation project is fully funded and cash flow positive, requiring no additional capital from this raise.

• The raise supports the long-term strategy to deliver scalable, high-quality space-based intelligence and aims to broaden the shareholder base.

Market trends and business outlook

• There is a notable increase in demand for space-based data and analytics from both institutional and commercial users, especially in the maritime domain.

• The company is focusing on higher-value analytics products, not just raw data, to meet evolving customer needs.

• Strong demand continues for hardware products, including components and systems supplied to other manufacturers.

• Competition is present in hardware but less so in data and services, where the company holds a strong market position.

• The company provides small satellite technologies and services for data delivery and mission support, with applications in weather, maritime safety, security, defence, agriculture, and forestry.