Wednesday, 29 October 2008

Founder and Former President Sues AeroMechanical

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

Darryl Jacobs, the former President of AeroMechanical Services, recently filed a wrongful dismissal lawsuit against AMA claiming damages against AMA in the amount of $242,000.00 and further, or in the alternative, the amount of $300,000.00, plus other relief.

AMA hasn’t been able to file a statement of defense yet but AMA Chairman and CEO Bill Tempany said it will vigorously defend its actions.
The AMA board asked Mr. Jacobs to step out of the President’s office and take another executive position so he could focus on further development of AMA’s technology. (Mr. Jacobs is one of the three original inventors of AMA’s technology.)

But Mr. Jacobs refused the new position and later resigned from AMA’s board of directors. Richard Hayden, a seasoned, international aviation executive was brought in to replace Mr. Jacobs and since Mr. Hayden's appointment, a new fuel-saving initiative was created.

Using AMA’s technology as a backbone, the new fuel-saving program was designed to cut fuel costs by up to $250,000 per aircraft and open up a new recurring revenue stream for AMA.

To read the full press release, please click here.