AMA Wins Transport Canada Kudos & Court Update

AeroMechanical Services Ltd., (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million


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While AMA’s Oct. 30th announcement about a rarely offered Transport Canada designation wasn’t instant money in the bank it certainly was heightened credibility.

And credibility is a bankable asset for it is a critical factor when it comes to sales of its patented technology.

The Transport Canada designation that made AMA justifiably proud is called a Design Approval Organization (DAO).

In plain English, that means AMA can now make minor changes in installations and/or in the bluebox it installs in aircraft here and around the world.

It can also issue the necessary Transport Canada’s approvals for those changes itself.

In addition, AMA can more quickly make major changes working in tandem with Transport Canada.

Less than 40 Canadian companies have been granted a DAO designation so it speaks volumes about the integrity and competency of Jeff Brunner, AMA’s Manager of Certification Engineering, and his staff.

As AMA noted in its news release, Transport Canada developed a great deal of confidence in AMA over the six years the company has been working closely with the federal department to win a host of approvals for its bluebox technology.

Although AMA attached no estimates, it noted the designation will result, “in increased throughput capacity and cost savings.”

To read the full press release please click here.

In another news release on the same day, AMA gave an update on the latest development in Star Navigation’s patent infringement lawsuit against AMA in a northern California court.

In essence, the news release stated that Star failed to show the northern California court it has personal jurisdiction over AMA but it gave Star additional time and limited methods in order to advance further arguments.

The above action comes through AMA’s third motion to dismiss Star’s lawsuit.

AMA won two previous dismissal motions, but Star was able to carry on with the case by changing the roster of plaintiffs.

The northern California court set March 27, 2009 as the next hearing date on AMA’s motion to dismiss.

To read the full news release on this latter development, please click here.