Raises GBP660,000 for UAV Opportunities

RNS Number : 9694G

Strat Aero PLC

10 March 2015

 



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

10 March 2015

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

Raises £660,000 to Capitalise on New Opportunities in the Unmanned Aerial Vehicle Sector

Strat Aero plc, an international aerospace services company, is pleased to announce it has raised £660,000, before expenses, through the issue of 7,333,334 new ordinary shares ('Placing Shares') at 9p per share ('the Placing').  This funding marks a significant step for Strat Aero as it continues to realise its strategy of capitalising on commercial opportunities across the rapidly growing Unmanned Aerial Vehicle ('UAV') sector.

Highlights

·     Proceeds will be used to progress the Company's three primary divisions:

o  Unmanned Aerial Systems ('UAS') Pilot Training and Services;

o  Aviation Management and Consultancy Services; and

o  Aviation Software, Products and Services

UAS Pilot Training and Services

·     Initial training of United States Air Force ('USAF') instructors at the fully functional and multi-faceted UAS Training Centre in Roswell, New Mexico, to commence in Q1 2015.

·     Discussions at an advanced stage with the Government of the Netherlands to establish a multi-rotor and fixed wing UAV training centre at the former Valkenburg Air Base in the Netherlands

·     Negotiations at an advanced stage to secure multi-year contract with the Army Research Laboratory ('ARL'), a US Department which specialises in developing commercial applications from military hardware

·     Direct contract with ARL would be independent of agreement signed in February 2015 with 4D Tech Solutions, Inc ('4D'), an established software provider to ARL, for the provision of services under an existing budget of up to US$4 million over the next 12 months

·     Advanced discussions with four major wind farm operators in the US to provide UAV turbine and blade inspection services across their respective wind farm sites - one potential customer operates 3,000 turbines

Aviation Software, Products and Services

·     Pipeline of contracts with leading services providers for proprietary Aerospace Information Manager Software ('AIMS')

Aviation Management and Consultancy Services

·     Contracted work for the Cyprus Aviation Authority with respect to the provision of regulation guidance and the development of training manuals is proceeding on schedule

·     Consulting services to a number of national aviation authorities in the Middle East and Africa is on-going

·     Work continuing on project managing the establishment of a new low cost airline in the Middle East - current focus on initiative to accelerate development and reduce costs

Capt. Russell Peck, CEO of Strat Aero, said:

"Since listing Strat Aero in November 2014, the Board has been busy identifying numerous revenue generative and value accretive opportunities across the aerospace and aviation industry and we have made solid progress in advancing these discussions over the past four months.  The funds raised today will provide the Company with the ability to secure and develop these contracts and relationships as we look to establish a portfolio of scalable commercial interests to provide maximum returns for shareholders across the dynamic and rapidly growing aviation and aerospace sector.

"We have made a great start but we have merely scratched the surface in terms of the enormous emerging commercial and military UAV market.  We have formal relationships with high end participants across the value chain, including major customers such as the US Government, equipment suppliers including a leading US defence contractor, and research hubs such as the National Renewable Energy Laboratory, a division of the US Department of Energy.  Combined with our unique UAS training Facility in Roswell, New Mexico, where training is due to commence in the coming months, and our proven expertise in navigating the evolving regulatory landscape, Strat Aero has an established platform in place from which we can roll out our full UAS service offering and capitalise on the multiple opportunities we are seeing.

"We look forward to providing further updates to the market as we progress the numerous opportunities available to us."     

Admission

Application will be made for admission of the 7,333,334 New Ordinary Shares to trading on the AIM Market of the London Stock Exchange ("Admission"). It is anticipated that Admission will occur and dealings will commence in the New Ordinary Shares on 13 March 2015.  

Total Voting Rights

The New Ordinary Shares will rank pari passu with the existing Ordinary Shares currently traded on AIM.  Following Admission, there will be 84,301,771 Ordinary Shares in issue with voting rights. The Company does not hold any ordinary shares in treasury.  Therefore, the total number of voting rights in the Company is 84,301,771 and this figure 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.

**ENDS**

Enquiries:

Strat Aero plc
Russell Peck (Chief Executive)	Tel: [phone]
Graham Peck (Chairman)	Tel: [phone]
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Joint Broker
Stuart Gledhill Katy Birkin
Beaufort Securities Limited	Tel: [phone]
Joint Broker Jon Levinson
Elliot Hance
St Brides Partners Ltd	Tel: [phone]
Susie Geliher Frank Buhagiar

Notes

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of Unmanned Aerial System ('UAS') training solutions, airline management systems and consultancy services to the international aviation market.  The Company has three existing divisions: UAS Pilot Training and Services which operates from the fully functional and multi-faceted UAS Training Centre in Roswell, New Mexico; Aviation Software, Products and Services which includes the Company's proprietary advanced aerospace management system,  a cloud-based enterprise wide management solution for the aerospace sector and potentially, other sectors; and Aviation Management and Consultancy Services which has multiple contracts in place including project management of the establishment of a new low cost airline in the Middle East. 

The UAV division is looking to capitalise on opportunities resulting from the forecasted strong growth in the airline industry and in particular, the predicted exponential growth in the emerging UAV industry over the coming decade.  Civilian, law enforcement 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.  Strat Aero already has major contracts in place with international aviation companies, government bodies and universities including and importantly, an agreement with one of the largest US defence contractors to train military pilots to fly fixed wing UAVs at its Roswell centre.

 

END

 

 

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