RMS.L Regulatory News (RMS)

Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

15 October 2015

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

Raised £1.28 million to Support Roll Out of Integrated Global UAV Operations

Strat Aero plc, an international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle ("UAV") sector, is pleased to announce that it has raised £1.28 million (before expenses) through the placing ('Placing') of 25,690,969 new ordinary shares of 1p each ('Ordinary Shares') at a placing price of 5p per ordinary share ('Placing Shares') with both new and existing shareholders. In addition, 25,690,969 warrants at a price of 8p per share with a term of 1 year are to be issued to subscribers of the Placing, subject to shareholder approval. Beaufort Securities Limited acted as broker to the Placing and Cornhill Capital Limited has been appointed as Joint Broker to the Company with immediate effect.

The funds raised will be used to support the Company's active growth strategy as it continues to build a vertically integrated UAV offering covering all aspects of the value chain including software, hardware and services. This growth strategy has been underpinned through the completion of two highly strategic corporate transactions, namely: the acquisition of Geocurve Holdings Limited, which specialises in the provision of UAV operated topographical surveys and inspection services with an established blue chip customer base, and; a joint venture agreement with UAV Airways Limited, which specialises in the provision of UAV training, in order to establish Remotely Piloted Aircraft & Systems ("RPAS") training centres and deliver RPAS training courses in territories overseas.

Tony Dunleavy, CEO of Strat Aero, said: "Having recently announced a new much broader strategy to become a full global solutions provider in the rapidly emerging high growth UAV sector, we are highly encouraged by the backing we have received from both new and existing investors. With a strengthened management team and two highly strategic transactions secured, which significantly enhance the Company's UAV service offering, the funds raised will allow the Company to build on the momentum behind the business as we pursue additional transaction opportunities, a number of which are well advanced. The funds will be used both to finance the new and existing transactions as well as to initiate more aggressive growth strategies across the enlarged Strat Aero group. We expect to provide further updates within a short timeframe both on progress in the existing business and also on new transactions, as we build a one stop UAV technology offering, covering all of a client's needs including hardware, software solutions, and service."

Details of the Placing

Application will be made for the Placing shares, which will rank pari passu with the existing Ordinary Shares in the Company, to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective and dealings will commence at 7:00 a.m. on 21 October 2015.

Directors' participation in the Placing

Certain of the Directors and Management Team, and previous Directors of the Company, have agreed to subscribe for the following new ordinary shares in the Placing at the Placing price.

 Further issue of equity

The Company has made an application for 2,750,000 new Ordinary Shares (the "Acquisition Shares") to be admitted to trading on AIM. These Ordinary Shares are being issued as part payment to the vendors of Geocurve as announced on 30 September 2015. It is expected that admission will occur, and dealings in the Acquisition Shares will begin, at 7:00 a.m. on 19 October 2015. These shares will rank pari passu in all respects with the Company's existing Ordinary Shares.

In addition, Strat Aero is making an application for a further 1,559,031 Ordinary Shares to be admitted to trading on AIM. These Ordinary Shares are being issued to certain professional advisors of Strat Aero in satisfaction of fees outstanding. It is expected that admission will occur, and dealings in these further Shares will begin, at 7:00a.m. on 21 October 2015. These shares will rank pari passu in all respects with the Company's existing Ordinary Shares.

Share Capital

Following the issue of the Placing Shares, and the further issues of Equity as described above, the issued share capital of the Company will consist of 114,301,771 Ordinary Shares. No shares were held in treasury at the date of this announcement. The total current voting rights in the Company are therefore 114,301,771.

The above total current voting rights number is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.

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For further information please visit www.strat-aero.com or contact:

Notes:

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade. Civilian, law enforcement and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023.