NEWS OUT!!
Quasar Updates Intent to Acquire a FAA 141 Flight School
Sep 8, 2011 16:18:25 (ET)
JACKSONVILLE, FL, Sep 08, 2011 (MARKETWIRE via COMTEX) -- Quasar Aerospace Industries, Inc. (pinksheets:QASP)
Since inception one of the primary goals of the Corporation's business plan was centered on becoming certified as a FAA Part 141 Flight School. This certification would allow Quasar to meet the unmet and growing demand for trained commercial pilots that has become significantly stronger over the last two years.
The acquisition we previously announced includes assets and an existing operation that has been owned and operated by the same owner for ten years. The business is qualified to accept Veterans Administration (VA) funding and government sponsored student loans through a mutual agreement with a community college. The school has a FAA testing center which is licensed through the Computer Assisted Testing Service (CATS) that will allow us to receive additional revenue by administering the aeronautical knowledge test.
The initial analysis of the acquisition indicates that the purchase price less assets is approximately two times historical net revenue of a business that has been operated privately and not on a full time basis due to private matters of the current owners. Quasar believes under the right circumstances the current operations and margins can be significantly improved by active management of the business on a full time basis.
The most significant impact will be Atlantic Aviation's ability to capture revenue from third parties including the Veterans Administration and governments sponsored student loans. Atlantic will be presenting to the Defendant and the court a conservative estimate of those revenues in the first six months upon its ability to accept those students.
Lastly, Atlantic Aviation and the Corporation have been presented with an opportunity to develop a program to train pilots from outside of the United States sponsored and paid for by the student's home country. These discussions have been ongoing and have consistently contemplated training approximately thirty (30) new students a month at a fee of $55,000 each. Although nothing is definitive at this point, the discussions have progressed to the point that the Corporation felt it was necessary to secure the ability to accept these students. Other similar opportunities are also being presented to the Corporation from other countries.
In our overall analysis, this acquisition conservatively pays for itself in less than a year of operation. The Corporation firmly believes this acquisition will immediately provide a significant increase in revenues and earnings. We will continue to update our shareholders and the investment community as events unfold.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements as a result of various factors, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and Quasar Aerospace Industries, Inc. under take no obligation to update such statements.
Contact:
Quasar Aerospace Industries, Inc.
(904) 378-3259
SOURCE: Quasar Aerospace Industries, Inc.
LJ
