Sunday, February 6, 2011

NewSat inks deal to acquire orbital slots

NewSat has signed a deal with AP Kypros Satellites to rights or options to seven orbital slots for geostationary satellites and related spectrum. The current agreement allows NewSat exclusive use of one orbital slot, 50% use of the frequencies of another two slots, and options for another four orbital slots.

NewSat, which has been working on developing and launching their own telecommunications satellites called "Jabiru", believes that each satellite launched could generate in excess of $100 million of EBITDA per year according to CEO Adrian Ballintine.

Whilst NewSat has not yet signed any deal for satellite construction, the orbital slot agreement certainly is a vital step towards the launch of a future Jabiru satellite.

Financial Terms on the agreement are yet to be released, however it is understood that they will be paid for in five cash instalments with a sixth instalment paid in ordinary shares.

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