Related Party Transaction

RNS Number : 5813R

Strat Aero PLC

30 June 2015

 



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

30 June 2015

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

Related Party Transaction

Strat Aero plc, an international aerospace services company focused on the provision of training solutions, management systems and consultancy services to the global aviation market, announces that it entered into an agreement on 29 June 2015 (the "Agreement") with Russell Peck, the Company's Chief Executive Officer and largest shareholder, in respect of funds advanced by Russell Peck to Strat Aero International Inc. ("SAIL Inc.") the Company's wholly owned subsidiary, totalling US$450,738 (approximately £287,000) (the "Related Party Loan").

The outstanding Related Party Loan balance due to Russell Peck from Strat Aero Inc. as at 31 December 2014 amounted to US$64,738. The Related Party Loan balance is US$450,738 as at the date of this announcement following further advances by Russell Peck to SAIL Inc. amounting to US$386,000 made between 14 January 2015 and 29 June 2015.

Under the Agreement, Russell Peck has agreed that no repayments are required to be made by the Company or its subsidiaries for 18 months following the date of the Agreement and that the Related Party Loan is on an interest free and unsecured basis.

Russell Peck is a director and substantial shareholder in Strat Aero (as defined by the AIM Rules) and holds 24,207,675 Ordinary Shares representing 28.72 per cent of the issued share capital and voting rights of the Company and as such is considered to be a related party of the Company under the AIM Rules. The Agreement constitutes a related party transaction pursuant to AIM Rule 13. The Directors excluding Russell Peck, having consulted with the Company's nominated adviser, SP Angel Corporate Finance LLP, consider that the terms of the Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

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]
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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