May 16, 2023 08:00 AM Eastern Daylight Time
HALIFAX, Nova Scotia–(BUSINESS WIRE)–The Conference Board of Canada (CBOC) expects significant and lasting economic benefits for Nova Scotians and all Canadians as a direct result of investment and innovation in the global space sector. Specifically, the CBOC's recently released Economic Impact Study of Maritime Launch Services' Spaceport Nova Scotia initiative expects North America's first commercial spaceport will benefit multiple sectors across Canada including: construction, transportation, tourism, and professional, scientific, and technical services. Spaceport Nova Scotia is currently under construction near Canso, Nova Scotia.
“The report's findings state that the construction phase of Spaceport Nova Scotia alone will generate a total economic benefit impact for the Nova Scotia economy of $143 million,” said Stephen Matier President and CEO, Maritime Launch Services, adding, “For Canada, the construction phase of Spaceport Nova Scotia will contribute $171 million to the federal GDP, while boosting federal employment with over of 1,600 year-round jobs, including nearly 750 of which would be in Nova Scotia.”
Matier was quick to point out that these findings are only related to building Spaceport Nova Scotia, and that once the spaceport is in operation and servicing the high demand global satellite industry, the estimates will literally sky-rocket.
The Conference Board of Canada report findings confirm Matier's positive outlook. Once Spaceport Nova Scotia fully ramps up its operations, the Conference Board of Canada projects it will add around $300 million to Canada's GDP annually, boost revenue to governments by more than $100 million, and create close to 1,000 annual full-year jobs across Canada.
The Canadian government has committed their support for the global space sector as they have recently made significant investments and policy decisions to facilitate Canadian space innovation to compete on the global stage. In January of this year, the Government of Canada gathered at the Canadian Space Agency to announce plans to modernize existing launch regulations to support the commercial space sector, and to make way for Canadian space sector growth including Canada's first commercial spaceport.
“We have always known there is a massive global market for commercial space launch, and Canada can lead the way while benefitting the growth of our local and national economies along with our skilled workforce and technical space sector expertise”, said Matier. “While this report is specific to the benefits of our initiative in Nova Scotia, Canadian companies in the space technology sector, such as satellite manufacturers and software developers, will also see the significant economic benefits from Spaceport Nova Scotia.”
The Conference Board of Canada's economic impact of Spaceport Nova Scotia, titled Launching Canada's Space Sector, was released Tuesday May 16, and can be found and reviewed here.
Approval of Convertible Debentures and Related Terms
On May 5, 2023, the Company agreed with holders of its outstanding convertible debentures (the “Convertible Debentures”) to extend the term of the Convertible Debentures by one year to May 7, 2024 (the “Extension”). Concurrently with the Extension, the debenture holders elected to satisfy the accrued 4% interest up to and including May 7, 2023 through the issuance of an aggregate of 4,149,151 common shares of the Company (“Common Shares”) at an issue price of $0.1475 per Common Share in accordance with the terms of the Convertible Debentures. Under the terms of the Extension, the interest rate will increase from 4% to 9% starting May 8, 2023.
Subject to regulatory approval, the Extension provides that the debenture holders or the Company, upon satisfaction of the conditions specified in the Convertible Debentures, will have until the new maturity date to convert the principal and interest payable thereunder into Common Shares at an issue price of $0.1475 per Common Share, and increases the total number of Common Shares issuable under the Convertible Debentures by 4,576,271 to cover the interest payable over the extended term.
In accordance with NEO Exchange rules, these changes have been approved and confirmed by the Company's Board of Directors and by an instrument in writing signed by holders of more than 50% of the Common Shares of the Company that would have been eligible to vote thereon at a meeting of the shareholders called for such purpose. The Company is making this disclosure as a condition of an exemption under rules of the Exchange from having the Extension approved at a meeting shareholders.
Additionally, as part of the Extension, the Company amended its negative covenants in the Convertible Debentures to limit the Company's ability to enter into additional debt arrangements without the consent of the majority of the debenture holders. The Company did not announce the Extension 21 days in advance because the terms of the Extension remained subject to negotiation until May 5, 2023. The Convertible Debenture amending agreements are available under the Company's profile at http://www.SEDAR.com.
About Maritime Launch
Maritime Launch Services Inc. (NEO: MAXQ, OTCQB: MAXQF) is a Canadian-owned commercial space company based in Nova Scotia. Maritime Launch is developing Spaceport Nova Scotia, a launch site that will provide satellite delivery services to clients in support of the growing commercial space transportation industry over a wide range of inclinations. Spaceport Nova Scotia will allow small and medium sized launch vehicles to place their satellites into low-earth orbit. Spaceport Nova Scotia is Canada's first commercial orbital launch complex.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.
Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the timing of spaceport construction and ability to launch medium class vehicles.
Forward-looking statements in this news release are based on certain assumptions and expected future events, namely: the Company's ability to continue as a going concern; the Company's ability to continue to develop revenue-generating applications; continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; the continued growth of the Company; the Company's ability to finance its operations until profitability can be achieved and sustained.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the potential inability of the Company to continue as a going concern; risks associated with potential governmental and/or regulatory action with respect to the Company's operations; the inability of the Company to provide the enumerated services; and availability of launch vehicles.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
Sarah McLean, Vice President,
Communications and Corporate Affairs