GSTS secures $2 million in non-dilutive financing from BDC Capital
HALIFAX, September 8, 2022 – Halifax-based Global Spatial Technology Solutions (GSTS), a leading provider of global maritime data and analytics, has secured $2 million in non-dilutive funds from BDC Capital’s Growth & Transition Capital division. The funds are part of a larger capital program intended to help the company execute its growth strategy for the current year.
The funds will be used to accelerate the roll out of GSTS’s Maritime Artificial Intelligence Platform, OCIANATM. GSTS has spent 10 years developing its OCIANATM platform, in collaboration with various user groups, before launching it commercially last year. OCIANATM uses data from an array of over 150 satellites dedicated to maritime monitoring to establish a comprehensive understanding of activity on the world’s waterways. This includes satellites which were built to meet the maritime monitoring needs of the U.S. and Canadian governments. Over 200,000 vessels can be found on the world’s oceans and in seaports at any given time. OCIANATM can deliver intelligence on them all, providing global maritime domain awareness and vessel management solutions. Through the use of built-in artificial intelligence, the platform can provide a wide variety of real-time analytics to better manage risks and vessel movements. OCIANATM can, for example, provide an alert regarding illegal activities at sea or detect the presence of marine animals in shipping lanes, plan optimal routes to reduce fuel use and match vessel arrivals with berth availability at busy ports. OCIANATM features were developed in response to the expressed needs of government agencies, port authorities, shipping companies and defence contractors, including the Royal Canadian Navy and the Ports of Montreal and Halifax.
The BDC Capital financing will specifically support the hiring of executives to round out the management team as well as new engineering, sales and marketing personnel. The full financing package is also meant to position GSTS for a new equity raise in the near future. BDC Capital provided its portion of the funds as quasi-equity, a patient non-dilutive financial product adapted to the current developmental stage of the company. The loan was tailored to GSTS’s spending forecasts and expected milestones, with its return structure based in part on the company’s actual performance. Additionally, it withholds all principal repayments until maturity while still offering GSTS the flexibility to pay it down earlier if desired.
“The funding from BDC will enable GSTS to expand our team and global reach to support maritime safety, security and efficiency,” stated Richard Kolacz, GSTS CEO. “We have a rapidly expanding customer base who are benefitting from the capabilities that OCIANATM provides by improving predictability and reducing costs, emissions and manpower needs.”
This financing was arranged by Paul Ryan, Director, Growth & Transition Capital at BDC Capital in Halifax. “GSTS’s technology addresses a very scalable market with clear pain points. It was never a solution looking for a problem,” declares Ryan. “Its management team already totals 110 years of experience in the sector, which clearly shows in the sophistication of their processes. Such a level of organization is rare in a company this young.”
About Global Spatial Technology Solutions
GSTS is a leader in Artificial Intelligence solutions for the maritime domain. Our solutions are designed to save lives, energy, and the environment and support logistic resilience on a global scale through the use of innovative applications based on emerging data sets and analytics. Our solutions enable enhanced decision-based operations for civil, commercial and defence and security agencies and industries. For more information, visit www.gsts.ca.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.