VANCOUVER, BC, March 15, 2021 /CNW/ - Avcorp Industries
Inc. (TSX: AVP) (the "Company" or "Avcorp") is pleased to announce
today that it has entered into a multi-party Accommodation
Agreement with each of a significant shareholder and one of our
customers (the "Agreement") whereby, inter alia:
- The shareholder has agreed to provide a new non revolving
standby loan facility and capital equipment loan to the Company for
up to $13 million USD combined;
and
- The elimination of unamortized cash advances and forgiveness of
certain historic and future guarantee fees payable to the customer
totalling in aggregate approximately $11
million USD.
The Agreement represents a significant development in the
relationship with our customer and will enhance the Company's
financial performance as a result of the accommodations described
herein. "At a time when the aircraft industry generally has
struggled with the impact of Covid-19 the Agreement with the
significant shareholder and customer will provide additional
stability" stated Amandeep Kaler,
Avcorp Chief Executive Officer.
About Avcorp
The Avcorp Group designs and builds major
airframe structures for some of the world's leading aircraft
companies, including BAE Systems, Boeing, Bombardier, Lockheed
Martin and Subaru Corporation. The Avcorp Group has more than 60
years of experience, over 500 skilled employees and 636,000 square
feet of facilities. Avcorp Structures & Integration located in
Delta British Columbia, Canada is
dedicated to metallic and composite aerostructures assembly and
integration; Avcorp Engineered Composites located in Burlington Ontario, Canada is dedicated to
design and manufacture of composite aerostructures, and Avcorp
Composite Fabrication located in Gardena
California, USA has advanced composite aerostructures
fabrication capabilities for composite aerostructures. The Avcorp
Group offers integrated composite and metallic aircraft structures
to aircraft manufacturers, a distinct advantage in the pursuit of
contracts for new aircraft designs, which require lower-cost,
light-weight, strong, reliable structures. Comtek Advanced
Structures Ltd., at our Burlington,
Ontario, Canada location also provides aircraft operators
with aircraft structural component repair services for
commercial aircraft.
Avcorp Composite Fabrication Inc. is wholly owned by Avcorp US
Holdings Inc. Both companies are incorporated in the State of Delaware, USA, and are wholly owned
subsidiaries of Avcorp Industries Inc.
Comtek Advanced Structures Ltd., incorporated in the Province of
Ontario, Canada, is a wholly owned
subsidiary of Avcorp Industries Inc.
Avcorp Industries Inc. is a federally incorporated reporting
company in Canada and traded on
the Toronto Stock Exchange (TSX:AVP).
AMANDEEP KALER
CHIEF EXECUTIVE OFFICER
AVCORP GROUP
Forward-Looking Statements
This release should be read in conjunction with the Company's
unaudited financial statements contained in the Company's Annual
Report and with the quarterly financial statements and accompanying
notes filed with Sedar (www.sedar.com).
Certain statements in this release and other oral and written
statements made by the Company from time to time are
forward-looking statements, including those that discuss
strategies, goals, outlook or other non-historical matters; or
projected revenues, income, returns or other financial measures.
These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially
from those contained in the statements, including the following:
(a) changes in worldwide economic and political conditions that
impact interest and foreign exchange rates; (b) the occurrence of
work stoppages and strikes at key facilities of the Corporation or
the Corporation's customers or suppliers; (c) government funding
and program approvals affecting products being developed or sold
under government programs; (d) cost and delivery performance under
various program and development contracts; (e) the adequacy of cost
estimates for various customer care programs including servicing
warranties; (f) the ability to control costs and successful
implementation of various cost reduction programs; (g) the timing
of certifications of new aircraft products; (h) the occurrence of
downturns in customer markets to which the Corporation products are
sold or supplied or where the Corporation offers financing; (i)
changes in aircraft delivery schedules or cancellation of orders;
(j) the Corporation's ability to offset, through cost reductions,
raw material price increases and pricing pressure brought by
original equipment manufacturer customers; (k) the availability and
cost of insurance; (l) the Corporation's ability to maintain
portfolio credit quality; (m) the Corporation's access to debt
financing at competitive rates; (n) uncertainty in estimating
contingent liabilities and establishing reserves tailored to
address such contingencies; and (o) integration of newly acquired
operations and associated expenses may adversely
affect profitability.
For further information about
Avcorp Industries Inc. please visit our website.
www.avcorp.com
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SOURCE Avcorp Industries Inc.
