Creotech Instruments, a leading Polish satellite manufacturer and provider of satellite systems and components listed on the Warsaw Stock Exchange, has begun its book-building process for the Series J Share offering. On 27 September 2023, the company’s management board decided to offer as many as 396,557 Series J bearer shares through a private subscription. This offering targets specific investors, including shareholders with preferential rights, as per the resolution of the company’s General Meeting on 31 August 2023. The price per Series J Share will be established following the book-building procedure. In the process, the company will be advised by cc group, its regular IR and financial advisor, with Pekao Investment Banking S.A., Trigon Dom Maklerski S.A. and Bank Polska Kasa Opieki S.A. – Biuro Maklerskie Pekao serving as offer managers.

In July, Creotech Instruments unveiled its financing strategy for space projects associated with the microsatellite platforms they manufacture. Their ambition to rise as the leading microsatellite tech provider in the EU in defense and commercial projects revolves around a tri-pronged investment plan: diversifying the product portfolio, including rescaling the HyperSat platform to 200 kg, augmenting production capabilities, and reinforcing the sales division. The expected investments are anticipated to be financed from the proceeds raised from the Series J share issuance, targeting an amount between PLN 72-87m.

“The purpose of the Series J share offering, targeting select investors, is to raise enough capital to establish us as a major microsatellite technology provider across the EU. We envision investments in three strategic sectors: product portfolio diversification, manufacturing capability augmentation, and sales department reinforcement. Part of our portfolio growth strategy is to scale-up our proprietary under-development HyperSat platform to 200kg, facilitating active participation in the promising micro and mini satellite market segment. Approximately 60%-70% of the proceeds are slated for this area. In terms of manufacturing capability enhancement, we aim to swiftly adapt to the increased demand by expanding and updating our production and laboratory setups, earmarking around 15%-25% of the proceeds. The final element involves significant reinforcement of our sales department as our plan includes doubling our dedicated team and escalating efforts to boost Creotech’s global profile, designating about 15%-20% of the funds raised for this purpose,” remarked Grzegorz Brona, PhD, President of the Management Board (CEO) of Creotech Instruments S.A.

The three selected shareholders, Grzegorz Brona, Katarzyna Kubrak, and Paweł Kasprowicz, collectively holding about 36.5% of the company’s equity, are set to enter lock-up agreements around 13 October 2023. Per these agreements, they will not divest their held shares until 31 July 2024, barring consent from the Offer Manager, subject to standard exceptions applicable to similar offers. Moreover, the agreements grant each of the three shareholders the right to sell no more than 30,000 shares after 31 January 2024. The proceeds from such sales are primarily directed towards settling and repaying obligations to Agencji Rozwoju Przemysłu S.A. (state-owned Industrial Development Agency) in accordance with the lock-up agreement’s conditions.

Concurrently, shares owned by Mr. Grzegorz Kasprowicz (approximating 9.66%) are subject to a lock-up commitment until 12 October 2024, originating from the company’s shareholder agreement.

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