RMS.L Regulatory News (RMS)

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

29 December 2017

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

Result of Open Offer

On 13 December 2017 Strat Aero plc, an international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle ('UAV') sector, announced an open offer to raise up to £510,000 (the "Open Offer") to provide working capital, strengthen the Company's balance sheet, support the growth of the Company's core areas of business and facilitate the evaluation of potential strategic investment in complementary businesses and assets.

Accordingly, the Company is pleased to announce the results of the Open Offer, which closed for acceptances at 11.00 a.m. on 29 December 2017. Valid acceptances were received in respect of 1,173,624,395 new ordinary shares ("Open Offer Shares") representing approximately 81% of the maximum number of ordinary shares available under the Open Offer. This result in gross proceeds of £410,768 to the Company.

Director's Dealing

Paul Ryan, a non-executive Director of the Company, has agreed to subscribe for an aggregate of 186,010,627 Open Offer Shares including shares under the Excess Application Facility. Mr. Ryan's shares are held under his own name as well as by Warande1970 bvba, a company wholly owned by Mr. Ryan.

Following the issue of the New Open Offer Shares, Paul Ryan will have a beneficial interest in 339,267,770 ordinary shares of 0.01 pence each representing approximately 6.7% of the enlarged issued share capital and total voting rights of the Company.

All Qualifying Shareholders who applied for the Open Offer Entitlement in respect of 820,147,814 Open Offer Shares will receive their entitlement in full. Qualifying shareholders who applied under the Excess Application Facility in respect of 353,476,581 Open Offer Shares will receive the full number of Open Offer Shares for which they applied.

Conversion of Debt

In addition to the Open Offer, certain outstanding fees payable by the Company to an adviser will be applied for the subscription for 42,857,143 new ordinary shares at the Placing Price.

Total Voting Rights

Accordingly, a total of 1,216,481,538 Ordinary Shares have been allotted and it is expected that Admission and commencement of dealings in such will commence at 8.00 a.m. on 5 January 2018. On Admission, the issued share capital of the Company will consist of 5,026,384,852 Ordinary Shares. The Company holds no Ordinary Shares in treasury, therefore the total number of voting rights in the Company is 5,026,384,852 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Iain McLure, CEO of Strat Aero plc, commented, "The Board considered an Open Offer would provide a means to reward existing shareholders for their loyalty and enable them to participate on similar terms to the recent Placing and thereby continue to have a stake in the exciting future we see for the company. We are pleased that over 80% of our Open Offer was taken up. These funds, together with the capital injection from our recently announced placing, strengthen our balance sheet and will enable Strat Aero to execute its stated strategy, namely expand our revenue generative divisions, Survey & Inspection and Training & Education, and provide us with the ability to actively advance the evaluation of complementary businesses and assets. This process is already underway, and we hope to be in a position to provide updates to shareholders in due course."

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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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, focused 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.