Spacetalk locks in $10.0M placement to fund TPG and Vodafone growth push
Spacetalk Ltd (ASX: SPA) has received firm commitments from institutional and professional investors to raise up to $10.0 million (before costs) through a two-tranche placement of fully paid ordinary shares.
The raise involves the issue of 133,333,333 new Shares priced at $0.075 per Share. Proceeds are earmarked to resource execution on Spacetalk’s agreements with TPG Telecom and Vodafone Australia, positioning the company to convert those commercial arrangements into subscriber and revenue growth.
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How the two-tranche placement is structured
The placement is split into two tranches. Tranche 1 will be issued under the company’s existing placement capacity pursuant to ASX Listing Rule 7.1, while Tranche 2, the larger portion, is subject to shareholder approval.
Tranche 1 is expected to settle on 12 August 2026. Tranche 2 is expected to be considered by shareholders at a General Meeting anticipated to be held in September 2026.
| Tranche | Number of Shares | Gross Proceeds | Basis of Issue |
|---|---|---|---|
| Tranche 1 | 34,581,000 | ~$2,593,575 | ASX Listing Rule 7.1 (existing capacity) |
| Tranche 2 | 98,752,333 | ~$7,406,425 | Subject to shareholder approval |
| Total | 133,333,333 | $10,000,000 | — |
The $0.075 issue price represents a discount to recent trading levels:
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10.7% to the last closing price of $0.084 per Share on 31 July 2026.
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12.8% to the 5-day VWAP of $0.086 per Share up to and including 31 July 2026.
Tranche 2 also includes the subscription of 1,333,333 Shares for $100,000 by Mr Simon Crowther or his nominee (the “Directors Shares”), subject to shareholder approval under Listing Rule 10.11.
What the funds will do: converting the TPG and Vodafone opportunity
The proceeds are directed at operationalising Spacetalk’s telecommunications partnerships and expanding its product ecosystem. According to the announcement, funds raised will be applied to:
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Enhancement of the Spacetalk platform
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Investment in inventory and MVNO wholesale costs
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Costs of migrating to the TPG wholesale network
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Development of new devices
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Working capital and costs of the Offer
These allocations map directly to management’s stated priorities: accelerating platform development, launching online safety as a premium in-app feature, and rolling out the co-branded Vodafone app, alongside building the inventory and network capacity to support growing subscriber demand.
The TPG Telecom MVNO agreement positions Spacetalk to migrate its mobile customers onto a network covering 99% of the Australian population, with the company retaining full ownership of the customer relationship, brand, and pricing under that wholesale structure.
Simon Crowther, CEO and Managing Director
“This capital raise provides Spacetalk with the resources to execute on the significant commercial opportunities now in front of us. The funds will allow us to accelerate development of the Spacetalk platform, launch online safety as a premium in app feature and the co branded Vodafone app, invest in inventory and the network capacity needed to support growing subscriber demand. We have made strong strategic progress. The agreements with TPG Telecom and Vodafone Australia represent a fundamental shift in how we generate revenue, and the scale at which we can do it. This raise ensures we are properly resourced to convert that opportunity into growth. We thank our existing shareholders for their continued support and welcome new investors to the register.”
Understanding a two-tranche placement
A placement is a capital raising in which a company issues new shares directly to selected institutional and professional investors, rather than to all shareholders. It is a common method for listed companies to raise funds quickly without the longer timeframes of a broader offer.
Companies often split a raise into two tranches when the total number of new shares exceeds the placement capacity available under ASX Listing Rule 7.1. This rule allows an eligible company to issue up to a set percentage of its shares without a shareholder vote. Any amount above that threshold must be approved by shareholders at a General Meeting, which typically forms the second tranche.
Shares in a placement are usually issued at a discount to the prevailing market price. The discount is standard practice, compensating investors for committing capital and helping secure firm commitments upfront.
For SPA investors, the structure means Tranche 1 delivers immediate funds under existing capacity, while the larger Tranche 2 depends on the outcome of the September 2026 General Meeting vote.
The prior $6 million placement in March 2026 used the same two-tranche structure and the same lead manager, Taurus Capital Group, targeting app development and MVNO wholesale costs as Spacetalk pursued a $20-25 million annual recurring revenue target.
Lead Manager terms and the road to the September meeting
Taurus Capital Group Pty Ltd is acting as Lead Manager to the placement on an exclusive basis and will be paid a placement fee of 6% (plus GST) of the total gross proceeds raised.
Subject to shareholder approval under Listing Rule 7.1, Spacetalk will also issue Taurus Capital 30,000,000 unlisted options exercisable at $0.10 each, expiring 3 years from the date of settlement of the placement (the “Lead Manager Options”), as partial consideration for services provided.
Two approvals are anticipated to be sought at the September 2026 General Meeting:
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The issue of the Tranche 2 Placement Shares (Listing Rules 7.1 and 10.11)
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The issue of the 30,000,000 Lead Manager Options to Taurus Capital (Listing Rule 7.1)
With firm commitments in hand, the near-term focus shifts to settling Tranche 1 on 12 August 2026 and progressing towards the General Meeting, where the larger portion of the raise and the associated approvals will be put to shareholders.
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