Shares in jetpack maker suspended

Shares in Martin Jetpack have been suspended from trading on the Australian Stock Exchange.

Chief executive James West said the company had been unable to finalise its 2017 annual accounts until it struck an agreement with its main shareholder and funder Kuang-chi based in Hong Kong.

The Jetpack had obtained a Civil Aviation Authority conditional certificate of airworthiness and flight footage would soon be available on the website.

But the engine still required about three more years of development, and funding.

In its cash report for the end of June 2017, Martin Jetpack said it had working capital until October.

Kuang said it didn’t want to provide more money until it knew more details about the Jetpack’s commercial viability.

West said the company was working on incorporating elements of turbine engine design to make the Jetpack commercially viable.

The current engine required overhaul after 10 hours, which compared with rival commercial engines able to operate for 1500 hours before strip down, he said.

The company had downsized to 70 staff from 100 staff at its Wigram, Christchurch factory, West said.

The end-use for the machine was in lifeboat type scenarios such as medical evacuation, or retrieving people from burning buildings.

Depending on the outcome of discussions with Kuang-chi, the company might have to report a ‘‘material impairment of its assets’’ - in other words, writing down their value.

When the talks come to a conclusion the company will need to discuss the result with its auditors before being able to publish any accounts.

West warned the market that the accounts were likely to be late and therefore the shares would probably be suspended from trading.

He expected the accounts would be updated this month.

The machine has been more than in development and the company has raised more than $50 million from investors in that time. The shares are trading at 6c a share.