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 www.SEDAR.com