Martin Aircraft shareholders vote to quit costly ASX

Shareholders in Christchurch-based Martin Aircraft Company have voted in favour of delisting from the Australian Securities Exchange, but chief executive James West says it is business as usual.

Meanwhile, the jetpack company’s estranged founder Glenn Martin said his restraint-of-trade period was over and he was likely to go public in the next year or so with a new aviation invention he is developing in his Christchurch premises.

Martin Aircraft continues to employ 60 staff at its Wigram, Christchurch, headquarters as it prepares to build demonstration models. It aims to attract more Chinese investment to develop a commercial engine capable of longer flight.

While Martin Aircraft’s 52 per cent shareholder and major funder, KuangChi Science, would have swung the recent vote, about 65 per cent of minority shareholders also voted to delist, West said.

West said the ASX was a ‘‘brilliant platform’’ but it cost the company several hundred thousands dollars annually by the time listing, audit, legal and other fees were taken into account.

When asked if the production team would move to China, West said it was logical that when the company reached manufacturing stage it would be close to most potential customers. However, New Zealand was a favoured location for development because of its uncluttered skies and the support of regulatory authorities.

The Martin Jetpack has been in development for about 30 years and been supported by more than $60 million of investment.

But bringing a certifiable and commercial new type of aircraft to market would typically be a $100m spend, West said.

West said the drone market was different to the Martin Jetpack, which could carry a person or a payload.

The company would keep investors up to date with reports on the Unlisted exchange.