Encore's Orbital Ambition: A Bold Bet on Space Communications

VANCOUVER, British Columbia – June 25, 2026 – In a move that signals a bold expansion from terrestrial networks to the final frontier, Encore Technologies Corp. has announced a US$1 million strategic investment in Solstar Space Company, a U.S. firm at the vanguard of in-space communications. The deal, structured as a convertible loan, marks a significant pivot for the Vancouver-based technology company, tethering its future growth to the rapidly expanding space economy.

This is not just a financial transaction but a strategic alignment with a company whose technology has already proven its mettle in the harsh environment of space. Solstar's flagship product, the Deke Space Communicator, is currently operational in orbit, a critical milestone that has captured the attention of investors and industry giants alike. The investment provides Encore with a meaningful foothold in a high-growth sector that leaders at McKinsey & Co and the World Economic Forum have identified as one of the world's fastest-growing economies.

A Strategic Leap into the Final Frontier

For Encore Technologies, a public company focused on advancing intelligent infrastructure, the investment in Solstar represents a logical, if ambitious, next step. The company's leadership believes the line between Earth-based and space-based infrastructure is blurring, creating a new, integrated ecosystem of connectivity. This move positions Encore to capitalize on the increasing convergence of communications networks, telemetry systems, and distributed data infrastructure across both environments.

“Communications infrastructure will be a critical component of the next generation of intelligent systems, both on Earth and in space,” said Stephen Kukucha, Chief Executive Officer of Encore, in a statement accompanying the announcement. “We believe Solstar is developing technologies that address a growing need for persistent connectivity across commercial, civil and government space applications.”

The strategic rationale is clear: as activity in low Earth orbit, cislunar space, and beyond continues to accelerate, the demand for reliable, always-on communication is exploding. From commercial satellite operators and in-space manufacturing to government agencies conducting sensitive missions, the ability to transmit data and maintain control without interruption is paramount. Encore is betting that Solstar’s platform will become a foundational layer for this new era of space-based operations, aligning perfectly with its broader vision of enabling intelligent, resilient infrastructure.

Validated Technology Powering In-Space Connectivity

At the heart of this deal is Solstar's Deke Space Communicator, a compact device that has achieved what many space-tech startups only dream of: successful flight heritage. The communicator is currently operating successfully aboard the Momentus Vigoride 7 mission, which launched on a SpaceX Falcon 9 rocket in March 2026. Research confirms the Deke system has achieved Technology Readiness Level 9 (TRL 9), a NASA designation signifying a system that is flight-proven and ready for full commercial deployment.

This isn't a simple test run. The Deke service is actively being used by co-passengers on the mission, including technology pathfinders for NASA and the Defense Advanced Research Projects Agency (DARPA). Specifically, the device is facilitating a commercial rendezvous and proximity operations experiment with a NASA CubeSat, enabling the transfer of large data and image files. This on-orbit validation by some of the world's most demanding clients provides a powerful endorsement of Solstar's capabilities and significantly de-risks Encore's investment.

The technology addresses a fundamental challenge in space operations: communication blackouts. Traditional spacecraft rely on line-of-sight connections to ground stations, leaving them 'in the dark' for large portions of their orbit. Solstar's Deke communicator functions like an orbital router, leveraging existing commercial satellite constellations like Iridium to provide persistent, low-latency Wi-Fi and narrowband connectivity. This “always-on” capability is transformative, enabling real-time telemetry, remote operations, and critical mission alerts.

“With our Deke communications technology now successfully operating on-orbit, our focus shifts toward expanding our customer adoption, advancing our technology roadmap, and pursuing new opportunities, commercial and government, in Earth orbit and on the Moon,” commented Brian Barnett, Chief Executive Officer of Solstar. The capital infusion from Encore is timed perfectly to fuel this expansion.

The Financial Architecture of an Orbital Bet

To facilitate this strategic leap, Encore is undertaking a concurrent non-brokered private placement to raise up to C$1.4 million. The financing, priced at C$0.26 per common share, is designed primarily to fund the US$1 million investment in Solstar, with the remainder allocated to general working capital. This move will dilute existing shareholders but is a necessary step to secure a stake in what management sees as a pivotal emerging industry.

The investment itself is structured as a five-year secured convertible loan, a common instrument in venture financing that balances risk and reward. The loan carries an initial 10% annual interest rate, providing Encore with a fixed return. More importantly, it is designed to convert into Solstar equity upon certain trigger events, such as a future financing round or strategic transaction.

The conversion terms are particularly favorable to Encore, reflecting its role as an early, strategic investor. The loan will convert at a 25% discount to Solstar's future valuation, or at a price based on a pre-money valuation cap of US$14 million (less a 25% discount), whichever is lower. This cap protects Encore from significant dilution if Solstar's valuation soars, ensuring its early bet translates into a meaningful equity position. For Solstar, the structure provides vital growth capital without an immediate and fixed dilution of its ownership, allowing it to build value before the conversion takes place. The loan is also secured against Solstar's assets, offering Encore a degree of downside protection.

Forging the Future of Integrated Infrastructure

Beyond the financial terms, both companies emphasize the potential for deeper collaboration. Encore and Solstar intend to explore opportunities to integrate the space communications firm's capabilities with Encore’s broader intelligent infrastructure initiatives. This synergy could manifest in several ways, from offering clients integrated terrestrial and space-based data solutions to jointly developing new technologies for the distributed data networks of the future.

As the space economy matures, the need for seamless data flow between orbital assets, lunar outposts, and ground-based control centers will only grow. Solstar is already looking ahead, with a NASA contract to develop Lunar Wi-Fi Access Points. This forward-thinking roadmap suggests a long-term vision that extends into the emerging cislunar economy.

For Encore, this investment is more than a portfolio diversification; it is a declaration of intent. The company is positioning itself at the confluence of two major technology trends: the rise of intelligent, connected infrastructure on Earth and humanity's accelerating expansion into space. By backing a validated technology leader like Solstar, Encore is not just funding a promising startup; it is securing a launchpad for its own ambitions in the next generation of global infrastructure.