Business
Aerospace - development plans
Aerospace - development plans.
About this update from Hardide Plc
[{"type":"text","content":"\n Hardide PLC\n21 August 2007\n\n\n\nPress Release 21 August 2007\n\n\n\n\n\n\n Hardide plc\n\n\n ('Hardide' or 'the Company' or 'the Group')\n\n\n Hardide to fast track Aerospace Market development plans\n\n\n\nHardide plc (AIM:HDD), the provider of unique surface engineering technology, is\npleased to announce that it is to fast track its plans to penetrate the\naerospace sector in order to take advantage of significant new market conditions\nand blue chip customer opportunities.\n\nThe move has been prompted by the new EU REACH1 environmental legislation on\nchemicals which has driven many manufacturers to source alternative coating\ntechnologies to replace hard chrome. In addition, Hardide has been progressing\nalternative coating studies and/or test programmes with customers such as\nMessier-Dowty. This has resulted in the Company deciding to accelerate its five\nyear plan to grow its market share within the aerospace industry. Hardide is\ncurrently 18 months into the plan which has, to date, included success in\nsecuring approved supplier status with BAE Systems. The new timescale will\ncompact the programme to complete within the next year and a half, and will\ninclude securing further industry approvals and registrations.\n\nHardide's accelerated growth in the aerospace sector will be funded by raising\nup to £1 million of debt; the first £500,000 of which is through a two year\nfixed term loan from an existing shareholder, the Boyce Group, who constitute a\nrelated party under the AIM Rules. The loan is to take the form of an\nassignable company debenture; will have an interest rate of base plus two\npercent; attracts no penalty for early repayment; and will be repayable on\ndemand on a change of control of the Company. The deal also includes the option\nfor the Boyce Group to subscribe for £500,000 worth of shares at 12p per share,\nexercisable for a period of up to three years from 21 August 2007. The\ndirectors, having consulted with Seymour Pierce, the Company's nominated\nadviser, consider the terms to be fair and reasonable insofar as shareholders\nare concerned. The Company will make an announcement regarding the balance of\nup to a further £500,000 of debt in due course.\n\nThe additional working capital provided by the loan will support the creation of\nan aerospace business unit by funding a dedicated tea...