LONDON (Alliance News) - Drone manufacturer Strat Aero PLC on Friday said it has entered into an agreement to acquire Texas-based drone technology company Aero Kinetics for USD1.2 million.
Strat Aero will cover the acquisition with USD775,000 via the issue of a convertible promissory note to the seller, convertible into Strat Aero shares at a conversion price of 6.00 pence. In addition, it will pay GBP425,000 in cash on closing of the deal, along with USD80,000 in legal fees to support the acquisition.
The firm will also raise GBP1.6 million through the placing of 25.3 million shares at 6.25p per share to finance the deal. Strat Aero shares were down 12% to 6.6975p on Friday morning, one of the worst performers in the AIM All-Share.
Strat Aero said the deal backs its push to build a vertically-integrated drone company, covering all aspects of the value chain, including software, hardware and services.
"Aero Kinetics brings the technological know-how and capability into the enlarged group and completes our full service offering across all commercial markets," said Tony Dunleavy, Strat Aero's chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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