Leveraging its highly disruptive nanosatellite narrowband communication platform: ASX-listed nano-satellite communication company, Sky and Space Global Ltd (ASX: SAS) has bagged a 5-year binding network contract with the Africa-based mobile payments start-up, BeepTool, with an approximate US$30 million minimum contract value over this term. The agreement lays the foundation of a strong partnership between Sky and Space Global and BeepTool and the commitment to building innovative messaging and payment solutions in key African markets. Under the current arrangement, BeepTool will purchase all the available communications bandwidth that is required by BeepTool to fill its commercial demand, from SAS.

As per the group, the agreement commercially validates SAS’ nanosatellite technological capacity and delivers a critical financial contract for the next phase of the project. The deal primarily follows the outcome of the pilot indicated in the month of October by the two groups. While a failed field trial will lead to termination of the agreement, BeepTool has provided SAS with a security deposit covering advance services under the agreement.

The messaging and payment services provided by SAS and BeepTool will enable businesses and investors in the key markets to capitalize on the projected 33% growth of the mobile payments industry that is expected to reach $3,388 billion by 2022.

Lately, SAS had integrated top-tier cybersecurity solutions from Check Point Software Technologies LTD into the SAS network.

While the stock has been trading on volatility earlier this year, the group now aims to complete network management software by 2018 and achieve 24/7 service for most of equatorial belt by 2020. With the potential steaming up while trading scenario is to be watched (stock up over 28% on December 21, 2017), we give a “Hold” recommendation at the current price of $0.205
 

Revenue Opportunities (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.