Strat Aero plc, an international aerospace company focused on the rapidly emerging Unmanned Aerial Vehicle (“UAV”) sector, has this morning announced the settlement of all litigation and claims arising from its dispute with Mr W. Hulsey Smith (“Mr. Smith”), the Chief Executive Officer of Aero Kinetics Holdings LLC (“Aero Kinetics”).
Under the terms of the settlement, Strat Aero disclaims any allegations of fraud against Mr. Smith and will issue Mr. Smith 44,750,645 new Ordinary Shares, representing approximately 11.75% of the Company’s enlarged issued share capital. Strat Aero has also made a cash payment to Mr. Smith of US$75,000.
As a result of the settlement, both Strat Aero and Mr Smith are released from all current and future claims relating to the Company’s acquisition of Aero Kinetics and all debt and loan obligations relating to the Company’s acquisition of Aero Kinetics are deemed to have either been satisfied or written off. Both parties have agreed to dismiss all pending litigation between them which is subject to certain procedural formalities.
Application will be made for of the Settlement Shares, which will rank pari passu with the existing Ordinary Shares in the Company, to be admitted to trading on AIM (‘Admission’). It is expected that Admission will become effective and dealings will commence at 7:00 a.m. on or around 5 October 2016.
Following the issue of the Settlement Shares, the issued share capital of the Company will consist of 380,856,709 Ordinary Shares. No shares were held in treasury at the date of this announcement. The total current voting rights in the Company are therefore 380,856,709.
The total current voting rights number of 380,856,709 Ordinary Shares is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.