Strat Aero PLC Extension of Loan Facility (2700Y)
March 01 2017 - 10:03AM
UK Regulatory
TIDMAERO
RNS Number : 2700Y
Strat Aero PLC
01 March 2017
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support
Services
1 March 2017
Strat Aero plc ("Strat Aero," the "Company" or the "Group")
Extension of Loan Facility
Strat Aero plc, an international aerospace company focused on
the rapidly emerging Unmanned Aerial Vehicle ("UAV") sector,
announces that further to the announcement of 24 November 2016, the
Company has successfully re-negotiated the short term loan facility
('the Loan Facility') it entered into with Farina Investments (UK)
Ltd ('Farina') on favourable terms.
Under the new agreement, the term of the Loan Facility has been
extended for a period of 12 months from 1(st) March 2017 with an
option for the Company to extend this to a second year. The size of
the Loan Facility remains GBP300,000 however interest will be
charged at a rate of 8%, compared to the previously agreed interest
rate of 25%. The Loan Facility will continue to have a secured
fixed and floating charge. In exchange for agreeing the new terms
and in consideration of interest accrued to date, Farina is to be
issued with 50,000,000 new ordinary shares in the Company at a
price of 0.1p per ordinary share ("Farina Shares").
The Loan Facility was originally executed to provide adequate
working capital for the Company through to mid Q1 2017 and enable
management to focus on continuing to grow the business in line with
its stated strategy to focus on its two core divisions, Survey
& Inspection Services and Commercial UAS Training &
Education.
Subsequent to the execution of the original Loan Facility the
Company has raised equity capital in order to provide for its
expected working capital requirements, as it looks to deliver on
its target to become cash flow positive by the end of the year. The
Directors intend to retain the Loan Facility to provide the Company
with additional financial flexibility in support of this aim.
Admission
Application will be made for the Farina 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 8.00
a.m. on or around 7 March 2017.
Total Voting Rights
In accordance with the Financial Conduct Authority's Disclosure
and Transparency Rules, following the issue of the Farina Shares
the Company will have 1,964,285,262 ordinary shares of 0.1p each in
issue, none of which are held in treasury. Therefore, the total
number of voting rights in the Company is 1,964,285,262.
The above figure of 1,964,285,262 may be used by shareholders in
the Company as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change in their interest in, the share capital of the Company
under the FCA's Disclosure and Transparency Rules.
Iain McLure, CEO of Strat Aero plc, said "We regard the
successful renegotiation of the loan facility with Farina as a vote
of confidence in both the management team and our strategy to focus
on what we are good at, specifically delivering highly specialised
UAV based surveys and inspection services and UAV commercial
training and education. We are targeting breakeven at the operating
level this year and once this has been achieved we will have a cash
generative platform with which to fund our future expansion as we
look to scale up our activities and further position Strat Aero as
a leading UAV services provider."
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 Tel: +44 (0) 20 3470
LLP 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 Tel: +44 (0) 20 7710
9610
Colin Rowbury
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCJBMATMBAMBJR
(END) Dow Jones Newswires
March 01, 2017 11:03 ET (16:03 GMT)
Strat Aero (LSE:AERO)
Historical Stock Chart
From Apr 2024 to May 2024
Strat Aero (LSE:AERO)
Historical Stock Chart
From May 2023 to May 2024