MANASSAS, VA, Sept. 22 /CNW/ - Catch the Wind Ltd. (TSX-V: CTW.S), developer and manufacturer of the Vindicator(R) laser wind sensor (LWS) and other sensor products, announced today that it has acquired a majority ownership interest in an aircraft in order to improve the efficiency of its business operations and accelerate its business plan. Catch the Wind's share of the acquisition cost of the aircraft is USD $3.75 million, of which 92%, or USD $3.45 million, will be financed through long-term financing over a period of 10 years provided by General Electric on terms that Catch the Wind considers to be favorable. The Company's equity contribution associated with the purchase and its share of the transaction costs is approximately $300,000.
The aircraft will be used to transport the Company's engineering staff, laser sensor units, and requisite installation and maintenance equipment to remote locations in support of business development, customer support and field trial activities, as well as for other business purposes.
"Our Vindicator(R) LWS units are increasingly being installed at wind farms in remote areas, requiring considerable time and expense to reach," said David Samuels, Chief Financial Officer of Catch the Wind Ltd. "Ninety percent of the nation's airports are not serviced by commercial airlines, including the remote locations where our target wind farm customers are located. By reducing our travel costs, the interest in this strategic asset and its related financing will allow us to better utilize our working capital and enhance labor productivity, particularly as we continue to ramp-up our efforts towards the commercialization of our technology."
Catch the Wind Ltd., through its wholly-owned subsidiary, Catch the Wind, Inc., owns a seventy-five percent equity interest in Falcon Fifty LLC, an entity created on July 6, 2009 for the purpose of owning, but not operating, the aircraft. This structure substantially reduces the Company's acquisition and operational costs. This concept is similar to the popular fractional ownership structure, but does not use a third party manager for aircraft operations.
The remaining minority interest in the aircraft is owned by a company controlled by Philip Rogers and Alisa Rogers. Philip Rogers is President, CEO and a director of Catch the Wind, and Alisa Rogers is a director of Catch the Wind. Catch the Wind is not responsible for, and has no liability in respect of, any portion of the purchase price payable by the related party. For more information, see the Company's filing on SEDAR at www.sedar.com.
About Catch the Wind Ltd.
Catch the Wind Ltd. is a high-growth technology company headquartered in Manassas, Virginia. The company was founded in 2008 to develop and manufacture the Vindicator(R) laser wind sensor.
Catch the Wind serves the commercial market sector for laser based wind sensor systems, recognized as the "gold standard" in wind measurement. The company is focused on becoming a major contributor in making clean, renewable wind energy more affordable and profitable. For more information, visit www.catchthewindinc.com.
This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE BlueScout Technologies, Inc.
For further information: For further information: Catch the Wind Ltd.: Claudia Jaques, Vice President and General Counsel, (703) 393-0754, firstname.lastname@example.org; The Equicom Group: Joe Racanelli, Investor Relations, (416) 815-0700 ext. 243, email@example.com