Jetpack company Martin Aircraft suspended after it flies off course
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The ASX has suspended Kiwi jetpack maker Martin Aircraft Company from trading after it failed to lodge its yearly results on time.
Martin Aircraft (ASX:MJP) flagged earlier this week it would not have the results ready due to “discussions with respect to confirming ongoing funding support” which could see it forced to write down assets.
“Subject to the outcome of these discussions, there may be a material impairment of capitalised development assets and other assets in the company’s preliminary FY17 financial statements,” it said.
The company reported in June that some uncertainties had arisen in regards to the commercial viability of its program, and that major shareholder KuangChi Science Limited did not wish to provide further capital to the business until a viable commercial pathway for the aircraft could be determined in more detail.
Martin Aircraft boss James West told Stockhead work was underway to fix its money troubles.
“We are in active discussions to secure ongoing funding,” he said.
ASX general manager of communications Matthew Gibbs said Martin Aircraft was one of two companies to receive suspension notices this reporting season.
The second company was Chapmans (ASX:CHP), a diversified investment company with strong links to Capital Mining (ASX: CMY) who are also in voluntary suspension since August 14 pending an announcement on their medicinal cannabis investment.
“There were approximately 1200 to 1300 companies to which this deadline applies and the overwhelming majority lodged,” he said.
“To have two that were suspended is quite serious and rare… if they are not lodging their accounts then there is a bigger issue.”
But there is a small silver lining to Martin Aircraft’s reporting woes.
While informing the market that its results would be late this week, it also said it had received a tick of approval from aviation bosses — even if it’s a conditional one.
“The unmanned functional test program has been completed sufficiently to enable manned flight of the Martin Jetpack,” it said
“Following review of the jetpack and test programme, the New Zealand Civil Aviation Authority has granted the company a conditional certificate of airworthiness to allow the jetpack to fly within its test programme and capability demonstration flight envelope.”