Prosys Tech to Acquire $25.6M in Aircraft Engines, Rebrand as AFD Aero
Prosys Tech signs letter of intent to buy nine aircraft engines from Aeronautics Fund SCA in a reverse takeover that will reshape the Canadian firm.
Canadian company Prosys Tech Corporation announced Thursday it has signed a letter of intent with Luxembourg-based Aeronautics Fund SCA SICAV-RAIF (AFD) to acquire nine aircraft engines and their associated lease contracts in a deal valued at $25.6 million, marking a dramatic strategic pivot for the Montreal-headquartered firm.
The transaction is structured as a reverse takeover, which will fundamentally change Prosys Tech's business operations and pave the way for its Class A common shares to be listed on the TSX Venture Exchange. Reverse takeovers are commonly used by private companies to achieve a public listing without a traditional IPO, and this deal signals AFD's intent to gain a foothold on a Canadian exchange.
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Alongside the acquisition, Prosys Tech confirmed plans for a concurrent private placement of up to $4.75 million, which analysts would typically view as a capital-raising move designed to fund integration costs and working capital as the company transitions into an aviation asset management business.
Following the close of the transaction, Prosys Tech will change its corporate name to AFD Aero Corporation, signaling the full rebranding of the entity around its new aviation-focused identity. The aircraft engine leasing market is a capital-intensive sector, and the acquisition of nine engines with existing lease contracts provides the renamed company with immediate revenue-generating assets from day one.
No closing date for the transaction was disclosed, and the deal remains subject to conditions typical for a reverse takeover of this nature, including regulatory and exchange approvals. Continue reading at GlobalNewswire.
