Florida-based Terran Orbital’s shares increased last month after the company sealed a $2.4 billion contract with Rivada Space Networks, based in Germany, to help build its communications satellites, CNBC reported.
“I believe this is the largest small [satellite] deal in the history of small sats – I don’t know any deal that is larger,” Terran co-founder, chairman and CEO Marc Bell told CNBC.
The spacecraft builder has committed to designing, manufacturing and deploying 288 satellites for Rivada as well as 12 spare satellites, for a total contract of 300 satellites, and a portion of ground support for the constellation, out of Terran’s Tyvak subsidiary based in Irvine, California.
“It solidifies our place as the manufacturer of small sats of choice. We’ve been doing a lot of work for the government and the intelligence community, and now we’re doing it for the commercial side as well,” Bell said. “I think people can now draw a very confident line on our path to profitability, our path to growth and they could see how we’re gonna get there.”
Though he didn't specify the exact sum of financial commitments confirmed by investors, Rivada Space Networks Executive Chairman Declan Ganley confirmed to CNBC that the amount is “sufficient to meet our obligations for the foreseeable future.”
The company’s stock jumped to 101% at its peak, finishing up 71% at $2.93 a share. The report said the stock has slid steadily since it debuted over a year ago.
“We are, in my opinion, still dramatically undervalued. The stock has moved up a little bit, compared to where it was, but it’s way down off its highs,” Bell said.
Terran Oribital hopes to begin launching the satellites as early as 2025 and confirmed its ability to begin commercial operations once 100 satellites have been deployed in orbit, as well as launching 300 satellites initially and eventually expanding it to 600 satellites to fulfill global coverage and redundancy.
The company also confirmed plans to design an interconnected global satellite network, with a focus on high speed and security.