MDA Space launches $712 million share offering to fund CLS acquisition

MDA Space Ltd. (TSX: MDA) (NYSE: MDA) has entered into a bought deal agreement with a syndicate of underwriters to sell 20,000,000 common shares at US$35.60 per share, raising gross proceeds of US$712 million.

The offering is led by BMO Capital Markets and RBC Capital Markets as joint lead bookrunners, with J.P. Morgan, Scotiabank, and BofA Securities serving as joint active bookrunners.

MDA Space has also granted underwriters a 30-day over-allotment option to purchase up to an additional 15% of the common shares at the offering price.

The company said it intends to use the net proceeds primarily to fund a portion of the cash purchase price for its separately announced acquisition of approximately a 70% interest in Collecte Localisation Satellites (CLS). Proceeds may also be used to repay a portion of CLS's existing debt and cover related transaction expenses.

The offering is expected to close on or about July 14, 2026, subject to customary conditions including listing approvals from the NYSE and the Toronto Stock Exchange. The closing of the offering is not conditional on the completion of the acquisition, and the acquisition is not conditional on the closing of the offering.

If the acquisition is not completed, MDA Space said it intends to use the proceeds to pursue its growth strategy, which may include other acquisitions or investments.

The shares will be offered in Canada under a short form base shelf prospectus and in the United States under a prospectus supplement filed with the Securities and Exchange Commission.

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