Firan Technology Group Expands Portfolio with FLYHT Acquisition

Firan Technology Group Corporation Successfully Acquires FLYHT Aerospace Solutions Ltd.

Firan Technology Group Corporation (TSX: FTG) has recently announced the successful completion of its plan to acquire FLYHT Aerospace Solutions Ltd. This strategic move marks a significant expansion for FTG, as FLYHT is now a wholly-owned subsidiary, allowing FTG to enhance its offerings in the aerospace sector.

Key Details of the Acquisition

The acquisition was backed by overwhelming support from FLYHT's shareholders, with approximately 97.9% voting in favor during a recent special meeting. The Transaction secured final approval from the Court of King’s Bench of Alberta, paving the way for a seamless transition that benefits both organizations.

Structure of the Transaction

Under the terms set forth in this agreement, FLYHT Shareholders had multiple options to receive compensation for their shares. They could choose to receive a combination of cash and FTG Shares or select an all-cash or all-share option, all while ensuring a well-managed distribution of resources. The total maximum cash consideration reached CAD$4.3 million, along with 1.3 million FTG Shares, giving shareholders flexible compensation choices.

Impact on Shareholders

With the completion of the acquisition, FLYHT Shares will now be delisted from the TSX Venture Exchange. FTG is also taking steps to have FLYHT cease to be a reporting issuer according to Canadian securities laws. This transition reflects FTG's commitment to streamline operations and create value for its shareholders through strategic acquisitions.

Leadership Comments and Future Outlook

Brad Bourne, President and CEO of FTG, expressed enthusiasm over the acquisition, highlighting FLYHT’s products as integral to FTG's growth strategy. As FTG continues to focus on expanding its footprint in the commercial aerospace aftermarket, incorporating FLYHT’s advanced SATCOM technology offers a unique advantage for Airbus aircraft operations.

Path to Growth

FTG is poised to leverage FLYHT's capabilities, focusing on ramping up sales and potentially insourcing manufacturing for FLYHT’s product lines. There is significant optimism regarding synergies between the teams and the avenues for growth that will directly benefit FTG's trajectory.

Financial Overview and Market Position

Prior to this acquisition, FTG did not hold any FLYHT Shares. Now, the company has acquired 38,997,650 FLYHT Shares, emphasizing their commitment to diversifying their product offerings in the aerospace and defense market. With the closing trading price of FTG Shares priced at CAD$7.28 on the Toronto Stock Exchange, this acquisition is expected to influence shareholder value positively.

About Firan Technology Group Corporation

FTG, well-regarded in the aerospace and defense electronics space, operates two main units: FTG Circuits and FTG Aerospace. As a leader in manufacturing high-technology printed circuit boards, FTG Circuits serves key customers in aviation and defense. FTG Aerospace focuses on providing innovative cockpit solutions and support services, further solidifying FTG's reputation in providing high-quality products across the globe.

Frequently Asked Questions

What was the purpose of Firan Technology Group's acquisition of FLYHT?

The acquisition aims to enhance FTG’s presence in the commercial aerospace aftermarket and leverage FLYHT's advanced SATCOM technology.

How did shareholders respond to the acquisition?

Approximately 97.9% of FLYHT shareholders voted in favor of the transaction, reflecting strong support for the acquisition.

What options did FLYHT shareholders have regarding their shares?

Shareholders could choose between receiving cash, FTG Shares, or a combination of both, ensuring they had flexible compensation options.

Will FLYHT continue to be a publicly traded company?

No, FLYHT Shares will be delisted from the TSX Venture Exchange, and the company will cease being a reporting issuer under Canadian securities laws.

What are FTG’s future plans after acquiring FLYHT?

FTG plans to ramp up sales of FLYHT’s product lines and considers insourcing manufacturing operations, fostering growth and value creation for shareholders.

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