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Chairman of Satixfy: "The market for satellite receivers is growing rapidly. Our ability to provide any solution is unique"

The company's chairman, Yoav Leibovitch, spoke to the website Hedan on the occasion of the start of trading in the stock on the New York Stock Exchange. Stixpay started trading last week after merging with Spak after its price was cut

Constellations (to establish) of satellites. Image:
Constellations (to establish) of satellites. Image:

"The market for satellite receivers is growing rapidly and our ability to supply satellite owners from the chip to a complete system will be unique." This is what Yoav Leibovitch, chairman of Stixpay, says in an interview with the website Hedan and CHIPORTAL following the start of trading in its shares on the New York Stock Exchange after its merger with the SPAC company Endurance Acquisition Corp. Spak companies are companies that were established in order to locate private companies and bring them to the stock exchange.

SatixFy began trading publicly on October 28 after its stock listing overcame the hurdle of waning investor interest in SPAK mergers and the death of Yoel Gat, its co-founder and former CEO. SatixFy's shares trade under the symbol SATX on the NYSE American, an exchange belonging to the NYSE and intended for small companies with a high growth rate. The stock closed its first trading day at a price of $29.39, an increase of more than 40% from the beginning of the day at a price of $20.92.

SPACs helped nine space companies go public last year; However, their popularity among investors has waned following the poor performance of these stocks. Even after the completion of the mergers, there are many shareholders who ask for money back instead of shares.

Stixpay said it expects to raise up to $230 million in gross proceeds by merging with Endurance, which is backed by New York-based private equity firm Antarctica Capital.

Following merger adjustments that cut SatixFy's valuation by more than half to $365 million to help push the deal, the companies signed an agreement to sell redeemable shares to an investment fund for later resale.

SatixFy plans to use the proceeds from its SPAC deal to fund an aggressive sales strategy for the antennas, terminals and modems it manufactures based on semiconductors developed in-house.

SatixFy's customers include the British broadband operator OneWeb, which plans to use SatixFy's terminals to provide Wi-Fi on airplanes. Canada's Telesat also plans to use SatixFy modems for ground antennas it will need to connect to its proposed LEO network.

Coming soon: directly from satellite to mobile

According to Leibovich, the highest growth is in the low-orbit communication satellite market. These satellites come in groups (constellations) of tens and hundreds of satellites each. Establishing these creates a tremendous opportunity for SatixFy's next-generation technologies." The company announced, among other things, that it hopes to join the wave of direct-to-cell satellite technologies in 5G that will eliminate the need for satellite phones.

"The move was particularly challenging and ended successfully. In any SPAK deal it is difficult to know if and when it will close. Even with us it was not clear until the last moment. This time it was a more complicated process. We finished well, the stock started to trade fivefold. After them, it started to wobble and wobble, but that's understandable given the bad timing of the market."

What was particularly difficult?

Leibovich: "It was difficult to convince investors. People now want to meet less, invest less and are not willing to take risks, therefore they must have technologies that will provide rapid growth. Most of the spikes are now redeeming (the shares), which was not acceptable a year ago. Investors don't want to stay in Spak. Now everyone is eating not because the goals have changed but because the market has changed. The market crashed by tens of percent and people are skeptical and cowardly."

What does the merger mean in a broader context of the space market?

"The space market is growing at a higher speed than other markets. We provide vertical solutions at different levels - from chips through products built on the chips to a complete PAYLOAD and any configuration required by the customers. We do everything "in house".

"The LEO rockets are launched by huge companies that invest billions of dollars and grow the market. the market There are dozens and hundreds of satellites for each constellation and each such satellite needs communication equipment both in the satellite itself and in means of reception, for example WIFI communication in airplanes. We are a company that wants to be successful in the field of satellites. We understand the market. We know the customers. We have huge customers. The market demands the products. We try to do what the market wants and make our business successful.”

What would Yoel Gat, who passed away from cancer at the beginning of the year, say about this?

Leibovich: "It is a great pity that Yoel Gat did not get to see his vision of being traded on the stock exchange come true. He was a one in a billion genius. He came up with the vision ten years ago, watched where the market was going and started developing chips accordingly. He got to see that the company was successful and had all the solid foundation it had before he passed away, but that doesn't lessen the suffering and grief."

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