VANCOUVER, Sept. 28, 2018 /PRNewswire/ - Avcorp Industries
Inc. (TSX: AVP) (the "Company", "Corporation", "Avcorp" or the
"Avcorp Group") announces the closing of a non-revolving term loan
agreement ("loan") with Panta Canada
B.V. ("Panta") in the principal amount of USD$3,500,000 effective September 24, 2018.
Panta Canada B.V. is Avcorp's
majority shareholder owning approximately 68.6% of the issued and
outstanding common shares. Panta Canada
B.V. is wholly owned by Panta Holdings B.V. Both companies
are incorporated in The
Netherlands and Mr. Jaap Rosen
Jacobson, a director of Avcorp, is the sole shareholder of
Panta Holdings B.V.
The loan is subordinated to existing security agreements and
bears interest at the aggregate rate of interest, expressed as an
annual rate, of the U.S. Base Rate of Royal Bank of Canada
("RBUSBR") plus a margin of 5.375% per annum.
The maturity date of the loan is the earlier of: (i) the date
upon which, for any reason, the outstanding principal balance of
the operating credit facility established under the Senior Loan
Agreement becomes due and owing; (ii) June
30, 2020; and (iii) the date on which there is an
acceleration of the loan as a result of an occurrence of an uncured
event of default.
Upon the happening of any event of default, Panta may at its
option: (i) declare that the indebtedness has become immediately
due and payable; and (ii) declare that the indebtedness has become
immediately due and payable and elect to convert all or part of the
indebtedness into common shares of Avcorp at an exercise price
equivalent to the then market price at the time of conversion which
shall not exceed $0.15 per common
share.
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 700 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.
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SOURCE Avcorp Industries Inc.