Jetpack maker Martin Aircraft Company has received from support
Hong Kong investment fund KuangChi Science for its IPO.
The AFR reports that the investment of $50million over the
next two years means that the New Zealand-based Martin Aircraft is likely to list
with the ASX in late February.
According to the company, the jetpack is suitable for a
Government and Agency market. It is being positioned as a “first responder” for
organisations like the fire service, search & rescue, disaster recovery and
KuangChi Science is an innovation-focused company which is based
in Shenzhen and is listed on the Hong Kong Stock Exchange. It first showed
interest in the jetpack when its chief executive visited New Zealand with Chinese
President Xi Jinping in November.
It has also since signed a memorandum of understanding with
Airways New Zealand, which is in charge of air traffic control in New Zealand.
Martin Aircraft said in a statement that the initial part of
the investment from KuangChi will be to buy 52.5 million shares in its IPO at
40 Australian cents each. This will equate to a $21m investment.
Following that, KuangChi will further subscribe for
convertible notes issued by Martin Aircraft with a total face value of between
$23m and $29m.
As scoop.nz notes, venture capital firm No. 8 Ventures and
Martin Aircraft Co founder Glenn Martin plan to cut their stakes in the jetpack
business before the IPO.
The Jetpack is powered by a V4 200hp engine driving two
ducted fans. It has been flown to a height of 5,000 feet and can reach speeds
of up to 74km/h.
According to the company, it also has potential commercial
and industrial uses, such as in the mining, energy, and agricultural sectors;
and possibly for joyrides.