Iain McLure, CEO of Strat Aero plc LON:AERO, said “The funds raised today provide an endorsement, by both new and existing shareholders, of management’s strategy to become cash flow positive by the end of the year. Achieving this will be a key milestone towards delivering on our medium-term objective to build Strat Aero into a leading provider of UAV based solutions in areas where we have the expertise, track record and technology: Survey & Inspection Services and Commercial UAS Training & Education. Once we have a low cost, cash generative platform in place, further expansion can be funded by the reinvestment of internally generated cash flows, as we focus on scaling up the business to take advantage of the huge opportunity we have identified in the fast-growing UAV sector.”
Strat Aero plc LON:AERO, an international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle (“UAV”) sector, has told DirectorsTalk that it has successfully raised GBP850,000 of new capital (before expenses) from new and existing shareholders by way of a placing of 850,000,000 new ordinary shares of 0.1p each at a price of 0.1p per ordinary share.
In addition, certain directors and a director of a subsidiary company have agreed to subscribe for 250,000,000 Ordinary Shares at the Placing Price in settlement of outstanding compensation and expenses accrued since 2015 (“Director Placing”). At the same time 1,170,000,000 warrants with a two-year expiry and an exercise price of 0.225p have also been granted in conjunction with the Placing and the Director Placing. The Placing, Director Placing and issue of warrants is subject to the passing of the resolutions to be put to the General Meeting on 21 February 2017 (the “General Meeting”) which was announced on 6 February 2017.
The funds raised will be invested in certain growth initiatives within Strat Aero’s two core divisions, Survey & Inspection Services and Commercial UAS Training & Education, as well as strengthening the Company’s working capital position until targeted breakeven at the operating level has been reached.
Directors’ participation in the Placing
As noted above, certain directors and a director of a subsidiary company have agreed to subscribe for the following new ordinary shares in the Director Placing at the Placing Price with attached warrants exercisable @ 0.225p in settlement of outstanding compensation and expenses accrued by the participating directors since 2015. The shares issued pursuant to the Placing will be subject to a three-month lock in agreement post the issue date.
Director Number of New Number Percentage Warrants
of Company Ordinary Shares of Ordinary Holding Issued
or subsidiary subscribed for Shares of Enlarged @ 0.225p
following Share
the admission Capital
of the
placing
---------------- ----------------- --------------- ------------- ------------
Iain McLure 100,000,000 100,000,000.00 5% 100,000,000
---------------- ----------------- --------------- ------------- ------------
Gerard
Dempsey 25,000,000 25,560,000.00 1% 25,000,000
---------------- ----------------- --------------- ------------- ------------
Paul Ryan 110,000,000 110,400,000.00 6% 110,000,000
---------------- ----------------- --------------- ------------- ------------
Russell
Peck 15,000,000 39,928,131.00 2%
---------------- ----------------- --------------- ------------- ------------
250,000,000 275,888,131 14.41% 235,000,000
