Home » Market News » DirectorsTalk Highlights » Cash Flow Positive by the end of the year” says Iain McLure, CEO of Strat Aero plc

Cash Flow Positive by the end of the year” says Iain McLure, CEO of Strat Aero plc

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

Receive our exclusive interviews – Enter your email to stay up to date.

Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.