Update on Cornerstone investor and IPO

15 January 2015

Further to the media release on the 19 December 2014, in which New Zealand-based Martin Aircraft Company Limited (MACL) announced that it has signed an investment agreement with KuangChi Science Limited (KuangChi Science), MACL provides the following update.

MACL has lodged a Third Supplementary Prospectus with ASIC that incorporates material information from both supplementary prospectus issued by the Company on 12 and 19 December 2014 and further disclosure regarding the transaction with KuangChi Science. All potential investors under the IPO should review the Third Supplementary Prospectus and the original Prospectus before making any investment decision.

KuangChi Science is a Hong Kong exchange listed company engaged in the novel space services and other innovative technology businesses with certain disruptive innovations and technologies as well as other businesses. The agreement is for a long term strategic partnership which over time will see KuangChi Science have a major shareholding in MACL following a A$50M (approx NZ$53M) investment in MACL over the next 30 months.

Key aspects of KuangChi Science investment are as follows;

  • KuangChi Science will subscribe for 52.5 million Shares in the IPO at A$0.40 per Share (IPO Shares), representing an investment of A$21 million; and
  • At such time as may be agreed between MACL and KuangChi Science (being no later than the date seven days prior to the 30 month anniversary of MACL listing on the ASX, KuangChi Science will subscribe for convertible notes with a total face value of between A$23 million to A$29 million.
  • In addition to the subscription for IPO Shares and convertible notes, KuangChi Science and MACL have agreed to form a separate joint venture company for the purposes of pursuing advanced research and development on the Martin Jetpack and to undertake sales and distribution of the Martin Jetpack in Hong Kong and China following its commercialisation.

The transaction with KuangChi Science remains subject to a number of conditions and approvals, including MACL shareholder approval and various regulatory approvals. Subject to receipt of these approvals it is anticipated the initial investment by KuangChi Science will be completed in late February 2015 and that the Company will list on ASX at that time.

Peter Coker, Managing Director and CEO said: “The KuangChi Science investment agreement not only brings significant capital to drive forward the commercialisation of the Martin Jetpack, it also introduces a whole new R&D world of meta material technology and advanced simulation testing that enables product development that in our opinion is well beyond the capabilities of even some of the world’s best aircraft manufacturers”.

Dr Liu Ruopeng, Chairman and Executive Director of KuangChi Science said: “We are excited with the prospect to partner on this disruptive transport technology. With our knowledge of advanced materials we hope to be able to help build a lighter, stronger Jetpack with increased payload and range that will open a whole new set of market opportunities here in China and globally”.

A copy of the third supplementary prospectus will be available for download from www.martinjetpack.com/offer . The Third Supplementary Prospectus Application Form (whether paper or electronic) must be received by 5.00pm (Sydney time) on the Closing Date (being 13 February 2015).

For further information, please contact:

Peter Coker
TEL: +64 (0)3 377 8584
MOBILE: +64 (0)21 811 005
EMAIL: This email address is being protected from spambots. You need JavaScript enabled to view it.
WEB: www.martinjetpack.com

About Martin Aircraft Company
Martin Aircraft Company is the maker of the world’s first practical jetpack set to revolutionise the industries of aviation, recreation and transportation. MACL is currently focused on developing the Martin Jetpack for use as a first responder vehicle and a heavy lift unmanned air vehicle.

About KuangChi Science
KuangChi Science is a Hong Kong Exchange listed technology company focussed on groundbreaking novel space services. KuangChi has a nickname as “Alien Tech” and is dedicated to making innovations that change the world.