29 Sep 2016 09:15
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services
29 September 2016
Strat Aero plc ("Strat Aero", the "Company" or the "Group")
Settlement of Litigation
Strat Aero plc, an international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle ("UAV") sector, is pleased to announce the settlement of all litigation and claims arising from its dispute with Mr W. Hulsey Smith ("Mr. Smith"), the Chief Executive Officer of Aero Kinetics Holdings LLC ("Aero Kinetics").
Under the terms of the settlement, Strat Aero disclaims any allegations of fraud against Mr. Smith and will issue Mr. Smith 44,750,645 new Ordinary Shares ("Settlement Shares"), representing approximately 11.75% of the Company's enlarged issued share capital. Strat Aero has also made a cash payment to Mr. Smith of US$75,000.
As a result of the settlement, both Strat Aero and Mr Smith are released from all current and future claims relating to the Company's acquisition of Aero Kinetics and all debt and loan obligations relating to the Company's acquisition of Aero Kinetics are deemed to have either been satisfied or written off. Both parties have agreed to dismiss all pending litigation between them which is subject to certain procedural formalities.
Application will be made for of the Settlement 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 or around 5 October 2016.
Following the issue of the Settlement Shares, the issued share capital of the Company will consist of 380,856,709 Ordinary Shares. No shares were held in treasury at the date of this announcement. The total current voting rights in the Company are therefore 380,856,709.
The total current voting rights number of 380,856,709 Ordinary Shares 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.
Market Abuse Regulation (MAR) Disclosure
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:
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 | |
Cornhill Capital Ltd | |
Joint Broker | |
Colin Rowbury | Tel: +44 (0) 20 7710 9610 |
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.