FLYHT Aerospace Solutions Ltd.
TSX Venture: FLY
Shares Issued: 139,386,166
Fully Diluted: 178,135,626
Some of our readers may recall AeroMechanical Services (now FLYHT Aerospace Solutions) and The Howard Group’s relationship with the company from 2006 through 2010. In that period, our relationships, capital markets and investor relations programs, in conjunction with AMA’s team, were instrumental in expanding the shareholder base ten-fold to over four thousand, while assisting in the raising of many millions of dollars. Market capitalization grew from approximately $5 million to a high of over a $100 million during that period.
It was also a period of turmoil as the world stood on the edge of the financial abyss through the last half of 2008 and early 2009. The company’s stock, like so many others, plunged in value, began a recovery through 2010, and again slowly sank, as concerns lingered about the strength of the commercial and business jet market and the little Calgary based company’s ability to gain a meaningful foothold in the ultra competitive commercial aviation market.
So; what motivated The Howard Group and FLYHT to again join hands?
What first attracted us to the company has never changed. We have remained enamoured with the recurring revenue model, the aviation market is very large, and we’re ardent believers in the technology.
FLYHT management would not have knocked on our door if it didn’t see value in the past relationship, and wanted to align itself with a group that was extremely familiar with the company, and also had common interests.
By way of disclosure, The Howard Group, members of The Howard Group, and the associated Insight Limited Partnership II own 3.39 million shares, representing the single largest holding of any of our clients. We still own stock as far back as six years ago and along the way signed cheques for the $0.50 and $1.00 private placements; a far distance from the current $0.20 range. By adding in just a few close relationships, our common interests amounts to many millions of shares.
Also, and we think it is a point that investors and the market should note; we know FLYHT management well enough that the team would not have made the decision to kick-up the intensity of the investor and capital market programs if it didn’t firmly believe there were going to be business developments to trumpet.
As many an investor knows, over the past year and a half, FLYHT management has not been banging the drum too loudly.
There are fundamental reasons why The Howard Group wants to be part of what we will call a “re-emerging” story. We feel that over the coming months much more colour, dimension and clarity will be added to FLYHT’s canvas. A clear image will begin to emerge for the audience and it will understand the value of the work that is being created.
In September, The Howard Group will release its perspective on FLYHT and why it has, in this case, re-engaged with the company. As many know, it is our practice to issue an extensive commentary to introduce new clients. At that point, we’ll get into much more detail on why we believe FLYHT’s technology, with approximately 300 units shipped to 35 customers around the world is a beachhead and we’ll also discuss the importance of the weight of its new relationships in the aviation industry.
The theme of our commentary will be “Sleeping With Elephants” to reflect the company’s trials and tribulations of dealing with the “big boys” in the aviation industry.
But much like the little engine that could, FLYHT looks like it has gone beyond “I think I can” to “I know I can”, and that is why we are invested and why we’re looking forward to the coming months.
For those people who are not overly familiar with FLYHT, and we unabashedly lift this from the company’s website, its main technology is the “Automated Flight Information Reporting System, or AFIRSTM. The system operates on multiple aircraft types and provides functions such as voice and text messaging, data collection and transmission, and on-demand streaming of black box data. AFIRS sends that information to its companion, UpTimeTM, the ground service product, which stores and transfers the data to the customer in real time. Aircraft operators can use this information to increase safety, improve service, and enhance profitability.
In addition to its data monitoring functions, AFIRS provides voice and text messaging capabilities that give pilots the ability to communicate with ground support. FLYHT, through its relationship with Iridium Communications, offers global satellite coverage that provides service to whoever needs it, when they need it, anywhere on the planet.
This technology is remarkable because for the first time in history FLYHT has demonstrated that live flight data can be streamed from an aircraft in real time. If an airplane encounters an emergency, FLYHT’s proven technology can be automatically triggered to stream vital data that is normally secured in the black box, and provide position information to designated sites on the ground in real time. This technology opens new doors for increased safety and data analysis capabilities in the aerospace industry.
President – The Howard Group Inc.