Today reached another milestone with the listing of its New Zealand investment company Martin Aircraft Company Limited (MJP) on the Australian Stock Exchange (ASX). MJP is also set to deliver its first manned and unmanned revolutionary jetpacks by 2016.
MJP shares opened at AUD0.6, up 50% from the IPO price of AUD0.4. Its final IPO price per share was AUD0.4 with an issuance of 67.5 million new shares, and raising a total of AUD27 million. The proceeds will be used for the development, production and sales promotion of Martin Jetpacks, and the development of related products and services.
KuangChi acquired 55,763,636 shares in MJP earlier in the week, on 23 February, as part of the Group’s strategy to deepen its subversive space technology and eventually provide a full range of space services. Martin Aircraft Company has been developing the Martin Jetpack, a practical jetpack with potential usage spanning research and rescue, military, recreational and commercial applications, both manned and unmanned.
KuangChi Chairman Dr. Liu Ruopeng and founder of Martin Aircraft, Glenn Martin were present for the listing ceremony in Sydney, together with MJP Chairman Jon Mayson and CEO Peter Coker.
Dr. Liu said KuangChi and Martin Aircraft agreed last December on KuangChi’s acquisition of shares in MJP, with both companies working jointly to achieve the dream of producing ‘Iron Man’ jetpacks, thereby revolutionizing the aviation, leisure and transport sector. Mr. Martin said at the listing event that KuangChi’s expertise would be beneficial to MJP’s commercial development and promotion of subversive space technology. Mr. Martin’s ideas and invention started in 1981, and the Martin Jetpack is expected to be the world’s first commercial and practical jetpack.
KuangChi subscribed for 41 million new shares at a cost of approximately AUD16 million. In addition, amongst the original key shareholders of MJP, founder Glenn Martin and institutional investor “8th venture” will sell shares to KuangChi. After the completion of the transaction and the IPO, KuangChi has become the largest shareholder of MJP.
KuangChi will use no more than AUD29 million (23 to 29 million) to subscribe for MJP’s convertible warrants. After completion of the transaction and full conversion of warrants convertible into shares, KuangChi would hold 52% of MJP and would have controlling rights. The two companies will also set up a joint venture in China, Hong Kong, where 51% will be held by KuangChi, and the joint venture would be able to subscribe for MJP’s future shares issuance, which could then raise KuangChi’s stake to 52%.
Dr. Liu commented: “We are delighted with this IPO milestone and the significant technology lift that Martin Jetpack adds to the KuangChi Group. It is a three-way win as the revolutionary jetpacks will benefit society too.”
MJP’s prospectus states that its Martin Jetpack (both manned and unmanned versions) has been approved by the New Zealand Civil Aviation Authority. In order to comply with the aviation rules of many other countries that are similar to New Zealand’s, MJP will make upgrades to comply with, for example, US aviation rules. The prototype for further testing and demonstration is currently at the final stage, and it will be equipped with an integrated ballistic parachute, to better ensure the safety of pilots.
The manned and unmanned jetpacks are divided into First Responder Jetpack and Personal Martin Jetpack. The former targets customers who are with quick-response departments, so that rescue workers could be like Iron Man, flying over obstacles and dangers. The Personal Edition echoes MJP’s original purpose for its jetpacks — personal leisure services.