It appears Sky and Space Global Limited [ASX:SAS] are staying true to their name by reaching for the share stars, as their shares surged over 20.55%. Their market cap now stands at roughly $330,650 million and their enterprise value at $249,430 million.
Shares were up by 31% at one stage, although they gave back some of their early gains, they’ve still managed to sit at a 25% increase.
Why did Sky and Space Global shares shoot up?
Thursday morning marked five years of the binding network contract they signed with BeepTool, a mobile payments start-up, worth approximately $30 million.
The two organisations will work side by side in order to help key African markets stay connected. BeepTool will utilise Space Global’s network as a platform for their communication breakthrough.
The management department seems to believe that this partnership will help prompt advertising opportunities for nanosatellite technology and its capabilities.
The overall combination of BeepTool’s mobile technology and nanosatellite functionalities will open up new windows of innovation across multiple channels. Including, improving commerce and communications usage in rural areas.
Their overall goal is to secure peer to peer banking and enable a low cost mobile payment option to regions with limited banking services at their disposal.
Are there plans for the future?
This is an ongoing project which has more phases down the track. They have both committed a vast amount of resources in order to establish an effective means of communications throughout developing countries. They plan to go even further on their commitments.
Sky and Space Global also plan to launch a constellation of about 200 nanosatellites by 2020. Back in October they signed an agreement with D-Orbit to provide deployment services for their future launch.
With all these current and future projects in place, there are some exciting times ahead for the company. Their shares show much potential for growth.
Junior Analyst, Money Morning
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