Jetpack company revises offer terms
MARTIN AIRCRAFT is dropping the price of shares to A40 cents in a revised public offer in which a young entrepreneurial Chinese company has taken a cornerstone shareholding.
KuangChi Science, listed on the Hong Kong Stock Exchange, could end up with 55 per cent of the ‘‘jetpack’’ flying machine company in 30 months’ time.
Martin Aircraft was founded in Christchurch by Glenn Martin and had developed a one-man flying machine that can fly as high as 1000 metres.
It is aimed initially at ‘‘first responders’’ — emergency services such as fire services, police, ambulance and search and rescue.
The jetpack has more than 30 minutes’ flying capability at a speed of 74kmh.
The company has issued a ‘‘second supplementary’’ prospectus offering shares now at A40 cents each (NZ43c,) instead of A50 (NZ55c.)
The offer has been extended until January 19.
KuangChi Science is subscribing for 52.5 million Martin Aircraft shares at A40c, raising A$21 million.
It will also subscribe for A$23m convertible notes issued by Martin Aircraft. That agreement will allow KuangChi to subscribe for more shares in the future.
Over time the minimum KuangChi investment is expected to be between A$44m and A$50m and, subject to full subscription, will result in it holding 55 per cent of the company’s capital in 30 months’ time, the second supplementary prospectus says.
The KuangChi deal requires shareholder approval and certain regulatory approvals and has resulted in some variations to the original offer, including a reduction in the price of the shares.
The share offer seeks to raise A$27m, rather than $25m, to accommodate some of the funds already raised under the offer.
The prospectus offers existing investors the chance to withdraw their investment also.