But Company Has Been Down This Road Before

Quasar Aerospace Industries said in a news release Tuesday that their wholly owned subsidiary, Atlantic Aviation, Inc. has entered into a letter of intent to acquire a flight school that is a VA qualified FAA 141 air agency. The target acquisition is an operating business with assets which will be included in the acquisition. The Corporation felt it was imperative to enter into this agreement in light of ongoing cutbacks at the FAA due to recent funding delays. This acquisition will rectify the Corporations inability to execute its business plan due to lack of certification, and carry out other opportunities on the immediate horizon for Quasar and Atlantic.

Upon entering into a Purchase Agreement, Atlantic says it will be able to capture revenues it currently is not able to, and enter into other agreements being negotiated, the terms of which have not been disclosed. The Corporation says it will discuss the economics of the acquisition in a further release detailing the reasons it feels this move will mark a decided turnaround for the Corporation.

Quasar says it will also be sending a request to the Defendant and Court simultaneously to approve this acquisition along with the economic reasons and rationale behind it.

The very vague news release announcing the acquisition may not be a surprise to those who have followed the company, which has not been without its controversy. Based at Herlong Airport in Jacksonville, FL, it says it does aircraft maintenance, and operates a flight school, Atlantic Aviation, at the airport. The company had announced in 2009 that it planned to expand through a series of acquisitions which never materialized. In February of this year, the company's records were subpoenaed by a federal grand jury, but details of the investigation were not released. At that time, according to a report in the Florida Times-Union, then-CEO Jeff DiGenova alerted shareholders via the Internet that he had contacted state and federal authorities concerning "alleged fraudulent business activities by prior management." As recently as June, Quasar was embroiled in a dispute over its control. The Florida Times-Union reported that the dispute was between recently-appointed CEO Joseph Canouse and DiGenova. The company is currently under the leadership of Canouse, and the legal dispute has not yet been resolved.

FMI: www.flmd.uscourts.gov