Launching satellites into orbit | Grounded, NorthStar asks its shareholders for help

It’s not easy to find a satellite launcher. After the sinking of Virgin Orbit last spring, the alternative solution found by NorthStar Ciel & Terre is lagging behind schedule. This new deadline forces the young Montreal company to approach its shareholders, including the financial arm of the Quebec state, which has already granted it 25 million to date.

“We are in a round [de financement] internal,” confirms NorthStar CEO and founder Stewart Bain in a telephone interview with The Press. “To finalize some things by the end of the year and because of some other items, we need a little bit of funding. »

Alongside Investissement Québec (IQ), the other shareholders, namely businessman Charles Sirois, Rogers and the government of Luxembourg, are also involved in the discussions, says Mr. Bain. It is a sum of “a few million dollars”, he adds, specifying that IQ is still analyzing the file.

NorthStar aims to deploy a constellation of satellites to manage traffic in space and make Montreal “the control tower of space”. Its service stands out for its ability to identify objects, even very small ones, floating in the space environment. It allows satellite operators to avoid collisions in space.

The company appears to be looking for longer-term funds, based on its recent modification to the Quebec registry of lobbyists. We can read there that she would like to see the financial arm of the Quebec state contribute to “at most 6 million […]or approximately 20% of the financing round.”

This suggests that NorthStar is looking to raise close to 30 million in total. Mr. Bain did not want to comment on this matter.

Patience

Under the partnership with Rocket Lab, NorthStar’s first satellites were expected to be in orbit around the end of October, according to Stewart Bain. We will now have to wait at least until December.

The reason: Last September, a rocket launch in New Zealand ended in failure following what was described as an “anomaly” by Rocket Lab. It was detected approximately two and a half minutes after takeoff.

This Long Beach-based company has still not offered more information on the nature of the “anomaly”. However, on October 25, the Federal Aviation Administration (FAA) gave it the right to start carrying out launches again. It remains to be seen when this will happen.

“Everyone agrees that it will happen in December, but the date is not known,” says Mr. Bain. I recently informed my board of directors of this information. »

Plan B

Initially, it was Virgin Orbit – founded by British billionaire Richard Branson – which was to put NorthStar’s first three satellites into orbit. However, the Montreal company had to find a plan B last spring. Unable to replenish its coffers, Virgin Orbit protected itself from its creditors. The company managed to deploy 33 satellites into orbit before ceasing operations.

“Don’t tell me about it,” Mr. Bain jokes, when asked if it is difficult to find a partner capable of putting satellites into orbit. “It’s really something. At least Rocket Lab has met the FAA’s requirements to return to flight. »

Taking into account its 47 million funding round announced at the start of the year, NorthStar has raised 120 million since its founding. Together, Quebec and Ottawa have committed to putting 26 million on the table so far. Its satellites are built by Spire Global, in Glasgow, Scotland. The US Department of Commerce is among the first clients of the company led by Mr. Bain.