$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.

FMI: www.utilicraft.com, www.freightfeeder.com/, www.capnetsecurities.com/