/NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES/
DELTA, BC, March 30, 2016 /CNW/ - Avcorp Industries Inc. (TSX: AVP) ("Avcorp" or the "Company") wishes to announce that its annual financial statements for the year ended December 31, 2015, including the related management discussion and analysis, and CEO and CFO certifications (collectively, the "Annual Financial Filings") will not be filed by the required filing date of March 30, 2016.
Effective December 18, 2015, the Company completed the acquisition (the "Acquisition") of the US-based composite aerostructures division of Hitco Carbon Composites Inc. ("Hitco"). At the closing of the Acquisition, the Company's subsidiary, Avcorp Composite Fabrication Inc., purchased the assets of the division of Hitco which produces composite structural parts for commercial and military aerostructures (the "Business").
The Company recently filed a business acquisition report (the "BAR") on March 1, 2016 in connection with the Acquisition, and the BAR contained carve-out financial statements for the interim period ended September 30, 2015 and audited financial statements for the year ended December 31, 2014 for the Business. Prior to the filing of the BAR, audited financial statements of the Business had not previously been prepared.
As the Annual Financial Filings will be the first consolidated audited financial statements of the Company which include financial results of the Business, the Company requires additional time to complete certain audit and fair market value procedures in order to include the financial results of the Business in its consolidated Annual Financial Filings.
The Company is working on the audit procedures required to complete the 2015 Annual Financial Filings and expects to be able to file the Annual Financial Filings within the next three weeks. The Company will provide updates as further information relating to the Annual Financial Filings becomes available.
The Company has applied to the applicable securities regulatory authorities and received a management cease trade order related to the Company's securities to be imposed against the Chief Executive Officer of the Company and the Vice President, Finance of the Company to trade securities of the Company. The management cease trade order will be in effect until the Annual Financial Filings are filed, and requires that the Annual Financial Filings be filed on or before May 30, 2016.
Until the Annual Financial Filings are filed, the Company intends to provide information in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults.
The Avcorp Group designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, Bombardier, Fuji Heavy Industries and Lockheed Martin. The Avcorp Group has more than 50 years of experience, over 776 skilled employees and 636,000 square feet of facilities. Avcorp Structures & Integration located in Delta BC is dedicated to metallic and composite aerostructures assembly and integration; Avcorp Engineered Composites located in Burlington ON is dedicated to design and manufacture of small-sized composite aerostructures, and Avcorp Composite Fabrication located in Gardena CA has advanced composite aerostructures fabrication capabilities for medium and large composite aerostructures. The Avcorp Group offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower-cost, light weight, strong, reliable structures. Comtek Advanced Structures Ltd., at our Burlington location also offers aircraft structural component repair services for commercial aircraft.
Avcorp Industries Inc. is a Federally incorporated reporting company traded on the Toronto Stock Exchange (TSX:AVP).
CHIEF EXECUTIVE OFFICER, AVCORP GROUP
This release should be read in conjunction with the Company's unaudited financial statements contained in the Company's Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (www.sedar.com).
Certain statements in this release and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (b) the occurrence of work stoppages and strikes at key facilities of the Corporation or the Corporation's customers or suppliers; (c) government funding and program approvals affecting products being developed or sold under government programs; (d) cost and delivery performance under various program and development contracts; (e) the adequacy of cost estimates for various customer care programs including servicing warranties; (f) the ability to control costs and successful implementation of various cost reduction programs; (g) the timing of certifications of new aircraft products; (h) the occurrence of downturns in customer markets to which the Corporation products are sold or supplied or where the Corporation offers financing; (i) changes in aircraft delivery schedules or cancellation of orders; (j) the Corporation's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (k) the availability and cost of insurance; (l) the Corporation's ability to maintain portfolio credit quality; (m) the Corporation's access to debt financing at competitive rates; (n) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies; and (o) integration of newly acquired operations and associated expenses may adversely affect profitability.
SOURCE Avcorp Industries Inc.
For further information: Sandi DiPrimo, Investor Relations Contact 604-587-4938 or email [email protected]