Creotech Instruments aspires to become EU’s Leading Microsatellite Technology Supplier in Defense and Commercial Projects

Creotech Instruments, a Poland-based satellite platforms, systems, and components manufacturer listed on the Warsaw Stock Exchange (WSE), recently unveiled its strategy to fund forthcoming space projects. The goal of this strategy is to position the company as the leading supplier of microsatellite technologies for defense and commercial projects in the European Union in the upcoming years. As of the strategy’s announcement date, the company identified the potential worth of currently discussed projects, such as those with the European Space Agency, the Ministry of National Defense, and the European Union Commission, at around EUR 300m in the coming years. For effective strategy implementation, the Board of Management plans to bolster the company’s capital and invest in three key areas: product portfolio expansion, production capacity development, and sales department growth. Creotech aims to raise the necessary investment capital through the issuance of new shares, while prioritizing pre-emptive rights for existing shareholders who hold a specific number of shares in the company, where possible. The Company will be advised by cc group, its regular IR and financial advisor. Furthermore, Bank Polska Kasa Opieki S.A. – Biuro Maklerskie Pekao, Pekao Investment Banking S.A., and Trigon Dom Maklerski S.A. have been appointed as offer managers.

To adopt the requisite share issuance resolution, the Creotech Instruments’ Board of Management has called for an Extraordinary General Meeting at the end of August 2023. If approved, considering market conditions among other factors, the company plans to issue up to 396,557 ordinary bearer shares, targeted at investors fulfilling the requirements set out in the issuance resolution.

“Over the recent years of rapid expansion, Creotech Instruments has been methodically building its international reputation and standing as the premier Polish manufacturer of microsatellite platforms, namely those weighing several dozen kilograms. The successful track record of our public offerings on the NewConnect and WSE Main Market in the challenging year of 2022 not only allowed us to expedite our organization’s growth, but also opened discussions regarding Creotech’s participation in the most significant satellite projects at national, European Union, European Space Agency, and commercial levels. This year marked a significant milestone for us. We secured a contract with the State Treasury – the Armament Agency for conducting an industrial feasibility study for the project of the Earth’s optoelectronic microsatellite constellation. Furthermore, as part of a consortium, we will implement a strategic project for the European Union, REACTS, wherein we will play a key role in assuring rapid response defense capabilities for EU Member States. Our ultimate aim is to establish ourselves as the leading provider of microsatellite technologies in defense and commercial projects within the EU. The value of projects under our ongoing discussions with partners could potentially reach around EUR 300m in the coming years, subject to various variables. Moreover, we estimate the total identified potential for satellite orders at approximately 150. To facilitate this growth, we have decided to invest further in three critical areas: expansion of our product portfolio, enhancement of production capacity, and growth of the sales department. We plan to raise the necessary funds through the issuance of new shares,” stated Grzegorz Brona, PhD, President of the Management Board (CEO) of Creotech Instruments S.A.

Creotech Instruments’ current level of advancement enables the commencement of its first significant projects. The company plans to continue these at the national level, with a specific focus on public needs and defense projects, and at the EU level as a leading supplier and regional leader in European initiatives. As the first-choice company in Central Europe for microsatellite technologies for the European Space Agency (ESA), Creotech aims to elevate its satellite platform deliveries in the sub-100 kg segment, with the capacity to scale up to 200 kg. Alongside national and European endeavors, Creotech aims to amplify its involvement in international commercial projects, aspiring to become a leading provider of satellite platforms for business applications.

In July 2023, Poland made a strategic move to boost its national contribution to the ESA budget by an additional EUR 295m in 2023-2025. To date, Creotech has identified eight potential projects where it could supply its proprietary satellite platform. If chosen to contribute to the execution of these projects, Creotech anticipates its share could amount to EUR 30-50m annually. Currently, the company is in talks with ESA regarding four different space missions, all based on its proprietary HyperSat microsatellite platform. Over the past decade, Creotech has successfully executed more than 25 space projects in conjunction with ESA, thereby becoming one of the largest Polish contractors and the first choice in Central Europe for key Agency projects.

“We are at the inception of the commercialization of our proprietary HyperSat satellite platform, for which we have established long-term development plans. These include optimizing it for missions in the 100-200 kg range. This strategy will not only enable us to adapt to global trends favoring the increase of individual satellite mass but also allow us to tap into the highest value segment. According to Euroconsult, this segment is expected to account for 38% of the total small satellite market value from 2022-2031, while offering even higher margins. In conjunction with the planned growth of production capacity, tailored to our expanding scale of operations, and the enlargement of the sales department, where we anticipate roughly doubling our personnel, we aim to become the leading provider of microsatellite platforms in the European Union. Our business model aligns with projections concerning the pace of the small satellite market’s development, which are revised upwards annually. Additionally, the volume of business inquiries we receive is rapidly increasing, fueled by heightened public awareness and strategic decisions by various countries and agencies to boost investments in space development, including defense, on a global scale,” said Paweł Górnicki, Vice-President of the Management Board in Charge of Finance (CFO) of Creotech Instruments S.A.

Creotech Instruments specializes in satellite systems and advanced electronics, including those used for quantum applications. It is the sole company in Poland capable of constructing microsatellites ranging from 10 kg to several dozen kilograms. A significant milestone for the company is the EagleEye satellite project, which is aimed at Earth observation in the visible spectrum, built on the proprietary HyperSat microsatellite platform. The platform supports a wide array of missions, from technological and scientific to observational, telecommunications, and deep space projects. Its modular design allows for scalability of satellites within the 10-60 kg range and potentially even up to 200 kg in the future.EagleEye is scheduled to be launched into orbit in 2024 aboard SpaceX’s Falcon 9 rocket. Additionally, the company is a collaborator on the PIAST project, through which it intends to launch a constellation of three small observation satellites in 2025, also based on the HyperSat platform.