By Alec Bruce, Local Journalism Initiative Reporter
Guysborough Journal
CANSO: As Maritime Launch Services (MLS) walks a tightrope – counting on investor confidence amid a multi-million-dollar working capital deficit, no revenue recorded to date, and a warning in its financial filings about its ability to operate as a “going concern” – the company says it remains on track to launch two suborbital rockets from its Canso spaceport in October.
According to its interim filings with Canadian securities regulators for Q2 2025 (ending June 30, 2025), the Halifax-based firm had $69,720 in cash on hand and $14.92 million in current liabilities as of June 30, resulting in a working capital deficit that has grown from $13.24 million a year earlier.
But in a written response to The Journal last week, Vice President of Corporate Affairs Sarah McLean said the company’s current financial position is consistent with management’s expectations and reflects the confidence of its longstanding shareholder base.
“As a pre-revenue company, we fund operations through ongoing shareholder support, strong vendor relationships, and the structure of our convertible debentures, which defer cash interest until maturity,” McLean wrote.
Those debentures – used to fund operations – totalled $10.93 million in the latest quarter, up from $9.56 million in Q2 2024. In March of this year, Maritime Launch extended the maturity of those instruments to December 2026. “This structure ensures that more cash remains available to support development and operations,” McLean said.
The number of common shares outstanding has climbed from 410.5 million in December 2023 to 484.5 million in June 2025. McLean said most new issuances in the past year came from a $2 million private placement in March “subscribed entirely by existing shareholders who continue to back the company.”
She added: “Additional shares were issued through debenture conversions, interest settlements, and stock option exercises. These issuances reduce liabilities and reflect the ongoing commitment of our long-term shareholder base.”
Meanwhile, the company’s financial statements for both Q2 2024 and Q2 2025 include a standard “Note to Reader” cautioning that “there is material uncertainty that may cast significant doubt as to whether the Company will have the ability to continue as a going concern.”
Asked what developments might mitigate that risk, McLean pointed to the company’s agreement with Leafspace [Italy] to operate a ground station at the Canso launch site, as well as a pathfinder launch agreement with Canadian aerospace firm Reaction Dynamics. “MLS continues to advance financing through equity, debt, and customer revenues,” she said, adding that Leafspace’s involvement is expected to generate income this year.
As part of its deal with Reaction Dynamics, announced in August, Maritime Launch reported receiving the first of 12 scheduled quarterly payments totalling $1.7 million, structured at $135,000 per quarter.
Despite its pre-revenue status and ongoing financial uncertainty, the company maintains that its operational goals are on schedule.
“As announced in June 2025, Maritime Launch is preparing for two suborbital launches in October 2025 in partnership with T Minus Engineering [Netherlands],” McLean said. “The launch site is ready, regulatory approvals are in place, and preparations remain on track for the end of October.”
The mission, she added, “demonstrates the capability of Spaceport Nova Scotia to support suborbital launches while also highlighting the value of our business model.” She also pointed to an educational partnership with Stories of Space, which will place student submissions aboard the rockets. “This initiative underscores the broader educational, cultural, and economic impact of the launch industry in Nova Scotia and across Canada.”
Asked whether any funds have yet flowed from the $12.9 million conditional federal contribution under the Strategic Innovation Fund (SIF), or the $30.7 million in Nova Scotia Capital Investment Tax Credit (CITC) approvals, McLean said both programs are reimbursement based, meaning, “Funding flows only after eligible projects are completed and claims are submitted. These approvals demonstrate meaningful support from provincial and federal governments for the launch sector and for our business model.”
Unlike year-end filings, neither the Q2 2025 nor Q2 2024 interim financial statements were reviewed by external auditors. McLean confirmed that Maritime Launch does not plan to obtain quarterly audit reviews.
“Under Canadian securities regulations, only annual financial statements are required to be audited by an external accounting firm,” she said. “For development stage companies like MLS, it is common practice to focus resources on operations rather than incurring the additional cost of quarterly audit reviews.”
Maritime Launch first announced plans to build a commercial spaceport in Canso in 2016. Founded by former NASA engineer Stephen Matier, the company is based in Halifax.