Hiber demands $1.5M from Astrocast after failed acquisition

IoT-as-a-service provider Hiber is demanding $1.5 million from Astrocast (ASTRO.OL) after the satellite communications company failed to complete its acquisition of Hiber by the Nov. 30 deadline.

Hiber is pursuing mediation for the claim under an arbitration process, according to a release.

Aspects of the purchase agreement, including last week’s $1.5 million claim against Astrocast, are being disputed by the company, a spokesperson for Astrocast told Connectivity Business News.

Switzerland-based Astrocast first agreed in May to purchase all of Netherlands-based Hiber’s stock in a deal valued at $9.3 million, with Hiber in turn investing $11.2 million in Astrocast’s secondary public offering on Euronext Growth Paris.

The deal was conditional upon the completion of Astrocast’s initial public offering, which did not happen in time due to unfavorable market conditions, a spokesperson for Hiber told Connectivity Business News.

Hiber officially terminated the purchase agreement on Nov. 24, six days before the deadline, according to a release.

Astrocast disclosed in May that it needed to raise $45 million by the end of 2022 to fund expansion plans to support the company’s growing fleet of nanosatellites, with the intent to reach 40 satellites in 2023, according to a release.

Astrocast is still looking to go public, now planning for an eventual listing without Hiber’s support, the Astrocast spokesperson said.

Despite the failed offering, Astrocast achieved an important milestone last week, launching four of its Astrocast 3U spacecraft into orbit, officially bringing its commercial constellation to 14 satellites. The company expects the additional satellites to enhance its network coverage and expand its global customer base, according to a release.

Shares of Astrocast were trading at $1.22 as of 2:34 p.m. ET today, up 35% from the previous market close. As of December 2022, Astrocast has a market capitalization of $457 million.