$260 Million CapNet Securities Engagement Agreement for FF5000 Aircraft Development
January 30 2008 - 7:49AM
Marketwired
ALBUQUERQUE, NM (OTCBB: UITA) announced today that the Company
has entered into a $260 million investment banking engagement
agreement for a two year period with CapNet Securities Corporation
("CapNet") as its exclusive financial consultant, placement Agent
and finder in connection with various financing strategies.
"CapNet Securities Corporation is pleased with the steps that
the majority shareholders of Utilicraft Aerospace Industries, Inc.
and Freight Feeder Aircraft Corporation have taken to put the
Company in a better position to seek the institutional financing
needed to complete the development and certification of the FF5000
aircraft." (Bo Ritz, CEO - CapNet Securities Corporation)
The initial (Stage 1) contemplated equity financing is planned
at Ten Million Dollars ($10 million) which will be used to continue
the development of the Freight Feeder Prototype aircraft now under
construction by Metalcraft Technologies.
The secondary (Stage 2) contemplated equity financing is planned
at Two-Hundred and Fifty Million Dollars ($250,000,000) which will
be used to complete FAA Certification and commence initial
production of the Freight Feeder aircraft.
About CapNet Securities Corporation:
CapNet Securities Corporation is a FINRA member broker/dealer,
registered in 35 states, specializing in investment banking
services. CapNet Securities provides a custom approach to
investment banking, adding significant value to entrepreneur and
investor alike, while also operating as a traditional full service
brokerage firm. CapNet provides a wide range of financial solutions
to meet specific client needs, be it an institution which needs
expertise in the fixed income market, or a small to medium
enterprise requiring investment banking services.
We act as placement agent for a broad range of industries. From
high-tech manufacturing to molecular science to energy, CapNet
places equal importance on sector growth and individual prospects
for success. Our relationships with institutional financing sources
and other capital resources enable us to offer our clients access
to a wide range of potential investors, including commercial
lenders, venture firms, private equity funds, buyout funds,
mezzanine and subordinated debt funds, individuals, angel
investors, and non-financial institutions seeking strategic
investment or merger partners. As an NASD member firm, CapNet can
arrange private and public placements of equities and document
those transactions in-house or through a partner firm.
Once funding has occurred, CapNet concentrates on building
shareholder value through finding appropriate merger and
acquisition targets, partnering with management to grow the company
organically, and arranging second and mezzanine stages of
investment. Finally, whether the company and investors ultimately
seeks an initial public offering, buyout, or other exit strategy,
CapNet will be there to help deliver the value.
For more information on CapNet Securities Corporations visit
their website at: www.capnetsecurities.com.
About Utilicraft Aerospace Industries, Inc. (OTCBB: UITA)
Utilicraft Aerospace Industries, Inc. is a 25% owner of Freight
Feeder Aircraft Corporation. Since the strategic sale of its
Freight Feeder aircraft technology in December of 2007 to Freight
Feeder Aircraft Corporation, the Company is now focusing its 2008
business-plan development efforts to actively seeking new strategic
aerospace products for development, particularly related to the
enhancement of the Freight Feeder aircraft in the air-cargo markets
worldwide -- to continue to build the asset base, to develop
cash-flow, and to continue to build shareholder value.
On December 12, 2007, Utilicraft Aerospace Industries, Inc.
filed a Form 8K with the Securities and Exchange Commission
announcing that with the approval of fifteen (15) UITA shareholders
owning approximately 62.53% of UITA's common stock and its Board of
Directors, entered into an Asset Purchase Agreement with Freight
Feeder Aircraft Corporation to sell all of UITA's technology and
assets to Freight Feeder Aircraft Corporation for a 25% equity
position in Freight Feeder Aircraft and warrants for shares of
Freight Feeder Aircraft Corporation's common stock, and a 1%
Royalty of aircraft sales that are eventually produced and
delivered by Freight Feeder Aircraft Corporation. The transaction
has a potential value to UITA of approximately $400 million in
future royalties and future Freight Feeder Aircraft Corporation
stock value received by UITA in this transaction -- subject to the
Freight Feeder aircraft program reaching the production phase. (See
details of the transaction in the UITA 8K filed on December 12,
2007)
For more on Utilicraft Aerospace Industries, Inc, go to
www.freightfeeder.com.
Forward-Looking Statements
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements in this press release involve
risks and uncertainties and reflect the company's current views
with respect to possible future events. Readers are cautioned that
no forward-looking statement can be guaranteed and actual results
or events may materially differ from those projected or
anticipated. In particular, the following factors, among others,
could cause actual results or events to differ materially from
those described in the forward-looking statements: the company's
ability to obtain and fulfill contracts for the sale of products,
protect intellectual property rights and manage future growth;
market acceptance of future products; product supplier delays;
design and engineering certification delays or denials; and the
introduction of similar products by competitors. Any
forward-looking statement made in this press release is made as of
the date of this press release, and the company assumes no
obligation to update any such forward-looking statement, whether as
a result of new information, future events, or otherwise.
Forward-looking statements in this press release should be
evaluated together with the many uncertainties that affect the
company's business.
For more information on Freight Feeder Aircraft Corporation,
please visit: www.freightfeeder.com.
Contact Info: info@freightfeeder.com Phone: (866) 654-3721
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