CARSON CITY, Nev., Oct. 13, 2010 (GLOBE NEWSWIRE) -- Tactical Air Defense Services, Inc. (OTCBB:TADF), an Aerospace/Defense Services contractor that offers tactical aviation services, aerial refueling, aircraft maintenance, disaster relief services, and other Aerospace/Defense services to the United States and Foreign militaries and agencies, is pleased to announce that it has received a $5,000,000 financing commitment from Crown Pacific Advisors, LLC to fund the purchase of military aircraft and related assets.
Pursuant to an asset purchase agreement, Tactical Air Defense Services, Inc. ("TADF") intends to use the $5,000,000 to purchase certain military fighter jets, related parts, and jet engines to capture new tactical aviation service contracts and maintenance service contracts, with both the U.S. Department of Defense and foreign militaries.
TADF management believes that when fully operational and under contract, the aircraft may add between $9,000,000 and $13,500,000 in the aggregate per year to its top-line revenue.
In addition, TADF anticipates that the aircraft, related parts, and jet engines may add approximately $24 million of assets to its balance sheet, as well as provide additional cash-flows to the Company from sales of surplus spare parts and jet engines.
TADF management believes that it may begin to generate cash-flows from contract revenues and asset sales no later than the first quarter of 2011, although it is possible that some of the aircraft will be operational and generating revenue under contract before year-end 2010.
The military aircraft that TADF intends to purchase are cost effective, low-maintenance, and extremely versatile fighter jets that can be used to provide a tactical support role as an air to ground close air support training platform or dissimilar air combat training aircraft , in support of tactical aviation contracts.
Crown Pacific Advisors, LLC is a Merchant Bank specializing in the financing of aviation assets. Crown Pacific Advisors is not a shareholder of TADF.
Alexis C. Korybut, Chief Executive Officer of TADF, stated, "We believe the $5,000,000 financing commitment from Crown Pacific for the purchase of these aircraft and related assets is a watershed event for TADF. The acquisition of these fighter jets will enable TADF to bid on larger and more profitable tactical aviation contracts and aircraft maintenance contracts, and the sale of any surplus spare parts and engines may provide a significant source of income to TADF for years to come, in addition to materially increasing the assets on our balance sheet."
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Forward Looking Statement Disclosure
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations and assumptions upon which they are based are reasonable, we can give no assurance that such expectations and assumptions will prove to have been correct. Some of these uncertainties include, without limitation, the company's ability to perform under existing contracts, to procure future contracts, to acquire certain assets, or to finalize funding for the purchase of certain assets. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, successful implementation of our business strategy and competition, any of which may cause actual results to differ materially from those described in the statements. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
CONTACT: The WSR Group Investor Relations Contact: Gerald N. Kieft (772) 219-7525 IR@theWSRgroup.com www.theWSRgroup.com