CARSON CITY, Nev., June 21, 2011 (GLOBE NEWSWIRE) -- Tactical Air Defense Services, Inc. (OTCQB:TADF), an Aerospace/Defense Services contractor that offers tactical aviation services, aerial refueling, aircraft maintenance, and other Aerospace/Defense services to the United States and Foreign militaries and agencies, is pleased to announce that it is has secured a letter of intent from Cornucopia, Ltd. ("Cornucopia") to commit up to $8 million for the purchase of military aircraft and related parts and other aircraft assets.
Pursuant to the letter of intent, Cornucopia shall commit up to $8 million to TADF's pending merger partner, Tactical Air Support, Inc. ("Tac-Air") for the purchase of certain military aircraft and related parts and other military aircraft assets, as disclosed in the form 8-K dated June 2, 2011 and as exhibited in the LOI between TADF and Tac-Air in connection with the acquisition of certain military aircraft and related assets, and subject to further and final approval of the transaction by Cornucopia.
TADF intends to use the aircraft with Tac-Air to bid on certain Department of Defense tactical aviation contracts as well as to deploy on current Tac-Air contracts with U.S. Department of Defense entities. The aircraft being negotiated can ideally leverage the recently leased Super Tucano aircraft and, if successfully acquired, will allow our rapid expansion into new market areas of the Commercial Air Services market.
Upon closing of the transaction, the aircraft and related parts and other assets shall be jointly owned 50/50 by TADF and Tac-Air, and all operating profits shall be shared 50/50 by TADF and Tac-Air. TADF believes, but cannot guarantee, that the aircraft can have a combined revenue potential of between $16 million to $22 million per year for TADF and Tac-Air.
Tac-Air, , is a highly regarded aerospace/defense services contractor founded by a group of former U.S. Navy, Marine, and Air Force Weapons School Instructors. Tac-Air has been awarded and is currently servicing multiple aerospace/defense contracts with the U.S. Department of Defense.
Cornucopia, Ltd. is a merchant-banking firm domiciled in the Turks and Caicos Islands, BVI, specializing in the financing of micro-cap growth companies. Cornucopia recently gave a $1 million dollar funding commitment to TADF, of which TADF has drawn down on $400,000. Cornucopia is currently a shareholder of TADF.
Alexis C. Korybut, Chief Executive Officer of TADF, stated, "We are very pleased to have secured this $8 million financing commitment from Cornucopia, Ltd. for the purchase of military aircraft through Tac-Air. Should we successfully close this transaction, we believe these aircraft will position our companies to compete very effectively for the larger and higher-margin tactical aviation contracts."
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Forward Looking Statement Disclosure
Statements contained herein that are not historical facts may be forward looking statements within the meaning of the Securities Act of 1933, as amended. 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: Investor Relations Contact: Gerald N. Kieft The WSR Group (772) 219-7525 IR@theWSRgroup.com www.theWSRgroup.com