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6 Apr 2016 07:00
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services
6 April 2016
Strat Aero plc ("Strat Aero", the "Company" or the "Group")
Response to Press Speculation and further information in connection with litigation
Strat Aero Plc, the AIM quoted international aerospace company focused on the Unmanned Aerial Vehicle ("UAV") sector, notes the recent speculation in the media following the Company's announcement of 1 April 2016.
Legal action against Mr. W. Hulsey Smith
As announced on 1 April 2016 the Company has filed a legal action against Mr W. Hulsey Smith, former Chairman and CEO of Strat Aero's subsidiary Aero Kinetics. The Company's action alleges counts of fraud and breach of contract arising from misrepresentations made by Mr. Smith upon which the Company relied and were material in the Company's decision to acquire Aero Kinetics.
There are a number of potential resolutions available to the Company in relation to the legal action including rescission of the purchase of Aero Kinetics as well as actual and consequential damages. The current action filed may also be amended going forward. The Company expects that Mr. Smith may launch some form of counterclaim but the board has received advice that such a claim would be unlikely to have any merit.
The Board strongly believes it has a robust legal position and will update the market as legal action progresses and as its plans for the Aero Kinetics business evolve in accordance with its regulatory obligations.
Funding
The Company has sufficient cash resources for the near term and the board expects to raise further funds in the current quarter to provide working capital in support of the continued growth of the Group's businesses. The Board is evaluating potential funding options, which may include the issue of equity, and will provide further updates as appropriate in due course.
Strategy
The current Board of Strat Aero, is made up of highly experienced executives who have held senior management positions in blue chip companies including Microsoft and Vodafone. The Board, is focused on implementing the Company's strategy, led by Iain McLure, the Company's newly appointed Chief Executive Officer. This strategy is centred on attracting new customers across its divisions bringing our significant experience and expertise in the UAV sector to new industries and new markets.
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For further information please visit www.strat-aero.com of contact:
Strat Aero plc | Tel: +44 (0) 1293 804741 |
Graham Peck (Chairman)
| |
SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3470 0470 |
Nominated Adviser and Joint Broker | |
Stuart Gledhill Jeff Keating | |
Beaufort Securities Limited | Tel: +44 (0) 20 7382 8300 |
Joint Broker | |
Elliot Hance | |
St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Financial PR Frank Buhagiar Susie Geliher |
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. Commercial 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.
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