TIDMAERO
RNS Number : 3940Y
Strat Aero PLC
05 December 2017
Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support
Services
Strat Aero plc ("Strat Aero", the "Company" or the "Group")
Strategy & Financing Update, Appointment of Broker &
Proposed Appointment of Executive Director
Strat Aero plc, an international aerospace company focused on
the rapidly emerging Unmanned Aerial Vehicle ('UAV') sector, is
pleased to announce a financing and strategy update which is
designed to facilitate the continued development of the Company's
two core businesses; 'Training & Education' and 'Survey &
Inspection', in addition to implementing an enhanced growth
strategy via the appraisal of complementary acquisition or
investment opportunities. This is in line with the Company's stated
objective to achieve improved financial performance in the near
term.
Overview
-- Raised GBP590,000 (before costs) through a Placing (the
"Placing") of 1,685,714,286 ordinary shares of 0.01 pence in the
Company ("Ordinary Shares") at a price of 0.035 pence per Ordinary
Share (the "Placing Shares")
-- 1,011,428,571 Warrants with a six month expiry and an
exercise price of 0.035 pence have also been issued in conjunction
with the Placing
-- In addition, to limit dilution to existing shareholders,
qualifying shareholders will be invited to participate in this
fundraising through a proposed open offer to raise up to a further
GBP500,000 by the issue of up to 1,428,571,428 Ordinary Shares at
the price of 0.035 pence per Ordinary Share (the "Open Offer")
-- The net proceeds of the Placing together with any further
funds raised from the Open Offer, will be used for working capital,
to strengthen the Company's balance sheet and facilitate the
following:
o Training & Education - continued development of Strat
Aero's Training solutions and delivery capabilities;
o Survey & Inspection - facilitate the acquisition and
adoption of the latest Unmanned Aerial Systems (UAS) technology;
and
o Potential strategic investment in complementary businesses and
assets for which several exciting opportunities have been
identified
-- Proposed appointment of Mr. Trevor Brown, a strategic
investor with more than 30 years' experience in growth companies,
to the Board as an Executive Director following his subscription
for 971,428,571 Placing Shares, representing 27% of the total
enlarged capital of the Company.
-- Appointment of Peterhouse Corporate Finance Limited
("Peterhouse") as joint broker with immediate effect
-- Intention for certain directors to subscribe for a further
85,714,286 Ordinary Shares at the Placing Price in settlement of
outstanding compensation and expenses accrued during 2017 - a
further RNS will follow on completion
Iain McLure, CEO of Strat Aero plc, commented, "Together with
the consolidation and rationalisation of Strat Aero over the past
two years into a business that is focused on what it does best,
specifically Training & Education and Survey & Inspection,
today's placing and the proposed Open Offer, not only place Strat
Aero in a much stronger position operationally, but also lay the
foundations for growth - both organic and via strategic
acquisition. I believe Strat Aero is now transitioning into a
period of sustainable growth, one that is based on capitalising on
our unique skillset and experience in the UAV sector and survey and
inspection businesses.
"The exciting opportunities we have identified and our strategy
to capitalise on them have clearly resonated with certain members
of the investment community - most notably, the well-known
strategic investor Trevor Brown, who has subscribed for 58% of the
total Placing Shares and who has also agreed to join our Board as
an Executive Director, subject to the completion of customary due
diligence I am also pleased that myself and Paul Ryan intend to
convert outstanding fees to increase our shareholdings aligning our
interests with those of shareholders.
"I believe Strat Aero is now at a pivotal stage in its
development and I look forward to providing further updates on our
progress, as we look to generate enhanced value for our
shareholders through the provision of value-add based services and
solutions."
Appointment of Joint Broker
Peterhouse Corporate Finance Limited, New Liverpool House, 15-17
Eldon Street, London EC2M 7LA has been appointed joint broker to
the Company with immediate effect. SP Angel Corporate Finance LLP
remains the Company's nominated adviser and joint broker.
Proposed Appointment of Trevor Brown
Mr Trevor Brown, a strategic investor in real estate and
equities for more than 30 years, has been nominated as a proposed
new Executive Director of the Company following his subscription
for 58% of the Placing Shares.
Mr Brown is currently an Executive Director of Flying Brands
plc, CEO of Braveheart Investment Group plc and a Non-Executive
Director of Management Resource Solutions plc.
More recently, Trevor was a director of AIM listed Feedback plc
and of Advanced Oncotherapy plc.
Further updates regarding Mr Brown's proposed board appointment
will be made in due course.
Admission of and Dealings in the Placing Shares
The issue of the Placing Shares is conditional on their
admission to trading on AIM ("Admission"). Application is being
made for the Placing Shares to be admitted to trading on AIM and it
is expected that Admission will become effective and dealing in the
Placing Shares will commence on 8th December 2017. The Placing
Shares will rank pari passu with existing Ordinary Shares.
Following Admission, the total issued share capital of the
Company will be 3,649,999,548 ordinary shares. The Placing Shares
will represent approximately 46% of the enlarged share capital of
the Company prior to the Open Offer.
The above figure of 3,649,999,548 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 Strat Aero under
the FCA's Disclosure and Transparency Rule.
Open Offer
A further announcement concerning the timetable and other
details of the Open Offer will be made shortly and a circular sent
to shareholders at the same time.
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.
- ENDS -
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
Caroline Rowe
Peterhouse Corporate Finance Tel: +44 (0) 20 7469
0930
Lucy Williams
St Brides Partners Ltd Tel: +44 (0) 20 7236
1177
Financial PR
Susie Geliher
Frank Buhagiar
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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