JACKSONVILLE, FL -- August 6, 2009 -- Quasar Aerospace Industries, Inc. (Pinksheets:QASP - News) (formerly) Equus Resources, Inc. (EQUR).
Quasar Aerospace announced that at a special meeting of its board of directors on August 5th, the board authorized The Chief Executive Officer to sign the agreement in principle to acquire our Target Acquisition #4 (TA#4). It has been agreed that TA#4 must be closed simultaneously with the three previously announced acquisitions.
This deal will more than double the previously announced forecasts for both revenue and profit for 2010. We are now estimating that our 2010 revenue will exceed $150 million and our pre-tax profit is estimated at approximately $33 million. (END QUOTE)
MY TAKE:
When you divide the $33 million by what we estimate to be the outstanding shares, you get greater than $.10 per share in operating profits. At today's price of $0.03, you have a tremendously undervalued stock. That is revenue of over $0.50 per share.
How can it be priced at just $.03 per share? The answer is when all is said and done, it wont be. This is a bargain, and it will move upward.
That is my opinion, and please do your own due diligence.
Thank you,
John Pentony
Publisher, StockGuru
View the StockGuru Profile for Quasar Aerospace Industries, Inc.
Quasar Aerospace Industries, Inc. (OTC: QASP) is an integrated aviation/aerospace corporation created to pursue an innovative and highly synergistic business strategy in the aerospace industry.
Quasar Aerospace Industries, Inc., formerly Equus Resources, Inc., is the holding company for a group of aviation related entities that through their union strengthens the Company making it more efficient and profitable.
Three wholly owned subsidiaries of the company are:
- Atlantic Aviation, Inc. (AAI) operates a flight school at Herlong Airport in Jacksonville, Florida
- Quasar Aircraft Corporation is developing a four place trainer aircraft
- Quasar Aircraft Corporation also intends to develop the Quasar I, a twin engine, six place very light jet aircraft
- Aviation Import/Export has been formed to import aircraft and/or components for sale, lease and use by qualified Quasar Aerospace Industries affiliates and other companies
Equus Resources, Inc. merged with Quasar Aerospace Industries, Inc. on March 18, 2009.
Atlantic Aviation, Inc. (AAI)
Atlantic Aviation, Inc. (AAI), a wholly owned subsidiary, operates a flight school at Herlong Airport in Jacksonville, Florida.
Atlantic Aviation Inc. was formed to respond to a critical shortage of flight school capacity in Florida with a particular demand for training international students. Once the initial school is operational, the goal is to market this "School Concept" as a turn-key franchise opportunity to aviation professionals around the country.
Letter of Intent for Flight School Students: Atlantic has signed a Letter of Intent with a group from India to train foreign flight students, and has submitted an application to the U. S. Secretary of State for approval for this operation. When the program begins, the Company plans to add ten students per month until it is fully operational with 60 students in training at all times at varying stages of training and a full capacity of 80 students.
The flight training program runs for approximately six months, and each student pays $66,000 for the full program.
At full capacity this one school could generate approximately ten million dollars in revenue with margins ranging from 38-45%. The flight training program currently has eight students enrolled.
Atlantic Aviation Jacksonville Facility:
The Company has a long-term lease with the Jacksonville Aviation Authority for a flight training facility.
The facility will have:
- A 14,000 square foot maintenance hangar that will hold six aircraft
- A 6,750 square foot administration and training building
- Ramp parking for 25 aircraft
The Herlong Airport Project agreements have been signed with the Project Manager/General Contractor, the Civil Engineering firm and the Architect.
Dakota & Company of Jacksonville was selected as the general contractor. This firm has been the developer and builder of several exceptional airport projects. Mr. Fred Dewitt, the company president, will oversee all engineering, design and construction for the maintenance hangar, office building and site development. Dakota and Company has recently completed the Marco Airplane Hangar in Jacksonville, Florida. www.dakotaandcompany.com.
The civil engineering company selected for the project is Phillips Civil Engineering. The architect the Company has chosen is Wharton Donaldson who is the Architect of record for the Marco Airplane Hangar and thus has a great working relationship with Dakota and Company. www.phillipscivil.com.
The project will be the first truly Green development on any airport in the Jacksonville area. Amongst the Green Building Initiatives will be photovoltaic electric, radiant heating and a highly insulated building.
Quasar Aerospace Industries, Inc.
Quasar Aircraft Corporation is developing a four seat trainer aircraft and will be the developer of a twin engine, six seat very light jet aircraft.
Acquisition of Manufacturing Company for Aircraft
Quasar Aerospace Industries, Inc. executed a binding agreement to acquire a manufacturing company that will provide production capability for the Quasar line of aircraft currently in development. For security reasons the name of the company will not be divulged until the acquisition is closed.
The acquisition is to be made with private funding at $54 M, of which $40 M will be in cash and the remainder in assumption of liabilities. This acquisition when it closes is anticipated to add approximately $44 M to the Company’s revenue stream and $10 M in EBITDA.
The company to be acquired has a vast range of capability in the aerospace industry, and operates three plants totaling approximately 300,000 square feet. The company owns two of the plants equaling 190,000 sq. ft. and leases the third plant. The revenue and profit numbers are achieved with less than 250 employees and an excellent safety record.
Undisclosed Purchase Agreement for Aviation/Aerospace Company
An agreement to acquire a third aviation/aerospace company was signed in May of 2009. The full Board of Directors of the company to be acquired unanimously approved recommending to the shareholders that they accept the offer of One Dollar per share for the 32 M shares outstanding. The members of the Board hold over 80% of the outstanding stock so shareholder approval is certain to be obtained.
The acquisition will add approximately $18 M to the Company’s annual revenue and $3.75 M to the bottom line. The current management team will remain intact. Quasar's management team has been closely associated with this company for over three years.
Management and Board of Directors
Dean Bradley. Chief Executive Officer and a member of the Board of Directors.
Mr. Bradley has served as CEO and President of multiple companies in both the public and private sectors. He has founded over a dozen companies and launched multiple startups.
James Ray President of Quasar Aircraft Corporation, a wholly owned subsidiary.
Mr. Ray brings over 40 years of senior level management in the aerospace/aircraft industry to the Company. He is one of the world's foremost experts in composite fiber technology having worked for the original United States Air Force team that initially evaluated graphite fibers for aviation use.
Mr. Ray will lead the design engineers and the manufacturing process for both the new single engine training aircraft being developed and the development program for the twin engine very light business jet currently under way.
In addition, James Ray headed up the design team for Sikorsky Aviation, a division of United Technologies, to bring us the Blackhawk and Seahawk helicopters. Most recently, Mr. Ray was CEO of North American Composite Consortium which serves as a liaison effecting aviation contracts for the United States Navy. Mr. Ray has served on the Company’s Advisory Board for the last three years and works seamlessly with management team.
Thomas Costanza Chief Financial Officer.
Mr. Costanza has 20 years of experience in financial management, tax expertise, securities compliance and "Best" Accounting Practices to the company. His professional experience includes working with both public and private companies in a variety of sectors including financial services, manufacturing and online media/e-commerce. His significant capability leading successful merger and acquisitions initiatives, finance capitalization strategies, and corporate governance.
Since 2008 Mr. Costanza has been President of Accountabiliti LLC, a firm that provides financial management solutions to companies. Prior to founding Accountabiliti he was CFO and interim President of a global manufacturer where he led the sale of the business to a major European private equity firm. He was CFO for a developing publicly traded online media and e-commerce business where he led the raising of $15 million in private equity and a significant acquisition that nearly doubled the revenue scale of the business. Mr. Costanza will remain with Accountabiliti, which will allow him access to a variety of professional resources provided by the firm. Mr. Costanza earned his Bachelor of Science Degree in Accounting from the Florida State University before passing the CPA exam on his first attempt. He began his professional career with big-four international audit and tax firm Ernst & Young based in Jacksonville, Florida.
Marty Zell -- Board of Directors and Vice-President for Shareholder Relations.
Bert Watson, Jr. -- Board of Directors
Contact:
Dean Bradley
904-612-8485
deanbrad@bellsouth.net
Scott Martin
770-521-9410
scott.martin@jpccapital.com
Quasar Aerospace Industries, Inc.
9300 Normandy Blvd.
Suite 511
Jacksonville, FL 32221
http://www.equusresources.com
Phone: 904-612-8485
Fax: 904-378-3252
This Profile contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements as a result of various factors, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and Equus Resources, Inc. and Quasar Aerospace Industries, Inc. under take no obligation to update such statements.
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