ExactEarth Announces the Closing of its Strategic Divestiture of Select Satellites to Myriota
CAMBRIDGE, ON, Aug. 4, 2020 /CNW/ - exactEarth Ltd. (TSX: XCT) ("exactEarth" or the "Company"), a leading provider of Satellite-AIS data services, announces that it has completed its previously announced transaction to divest four satellites from its first-generation constellation and its ground station assets to Myriota Canada Inc. ("Myriota Canada"), a wholly-owned subsidiary of Myriota PTY Ltd. ("Myriota"). The Company has received the necessary Canadian regulatory approvals and met all closing conditions to consummate the transaction. The agreement was initially announced via press release on March 31, 2020. All financial figures are in Canadian dollars unless otherwise stated.
"This transaction will further strengthen our financial position by generating approximately $1.0 million per year in net cash savings while preserving our access to the Satellite AIS data originated by the four satellites for the duration of their lifespan," said Peter Mabson, President & CEO of exactEarth. "It also extends our relationship with Myriota, which is an exciting and up-and-coming company that exactEarth has invested in and one that we have built a strong business relationship with over the past several years."
"This transaction marks a pivotal moment for Myriota in the acceleration of our North American expansion plans, including the establishment of our new Ontario, Canada office," said Alex Grant, CEO of Myriota. "The addition of new satellites, industry-experts, and a global network of ground stations will only fast-track our timeline to bring low-cost, low-power IoT connectivity to North American agriculture, defense, mining, and transport and logistics industries."