$260 Million Infusion Towards Development Of Prototype
Hauler
A fledgling aircraft company has received a needed cash infusion
to continue development of a new cargo plane.
Freight Feeder Aircraft Corporation, a US corporation 25% owned
by Utilicraft Aerospace Industries, announced Thursday it recently
entered into a two-year, $260 million investment banking engagement
agreement with CapNet Securities Corporation as its exclusive
financial consultant, placement agent and finder in connection with
various financing strategies.
"CapNet Securities Corporation is pleased with the steps that
the majority shareholders of Utilicraft Aerospace Industries, Inc.
and Freight Feeder Aircraft Corporation have taken to put the
Company in a better position to seek the institutional financing
needed to complete the development and certification of the FF5000
aircraft," said Bo Ritz, CapNet CEO.
The initial (Stage 1) contemplated equity financing is planned
at $10 million, which will be used to continue the development of
the Freight Feeder Prototype aircraft now under construction by
Metalcraft Technologies. The secondary (Stage 2) contemplated
equity financing is planned at $250 million, which will be used to
complete FAA Certification and commence initial production of the
Freight Feeder aircraft.
As ANN has reported,
Utilicraft's planned FF-1080 is a high-wing, twin-engine turboprop
aircraft designed to carry eight fully-loaded LD3 cargo containers
for a distance of 500 nautical miles. Lighter loads can be carried
distances up to 2,000 nautical miles, although the aircraft is
primarily intended for use in the short haul feeder role for large
volume package carriers.
Earlier this month, the company announced a design change to the
FF-1080, slightly widening the cargo compartment to accommodate six
of the larger 96in x 125in "main deck" standard industry containers
and pallets. The aircraft, to be offered by the Freight Feeder
Aircraft subsidiary, was then renamed the FF5000.
The main appeal of such an aircraft lies in its ability to
accept a loaded cargo container off a freight operator's larger,
full-sized aircraft, without the need for breaking down that
container's contents. Currently, regional providers for companies
such as FedEx, UPS, and DHL must unload those containers, and
transfer the contents onto much smaller aircraft -- such as FedEx's
C208 Cargomaster fleet, or any number of aged piston or
turboprop planes -- for transport to outlying areas.
While there would appear to be a healthy market for such an
aircraft, Utilicraft has struggled to the bring the plane to market
for several years. Predecessor American Utilicraft patented the
design for the FF-1080 in 1991.
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