Martin Aircraft shares recover to 6-month high on jetpack sales, demo flight in Shenzen

Monday 7th December 2015

Martin Aircraft's ASX listed shares rose to a six-month high on sales of the world's first commercial jetpack, which had its first public demonstration in front of a crowd of thousands in Shenzen, China.

The Christchurch based company completed a five minute public manned flight of the P12 Martin Jetpack in Shenzen over the weekend. Today its shares rose to as high as A$1.05 and were recently at 95 Australian cents, up from a low of 39 cents in September and up from their 60 cent listing price in February this year. They briefly soared to A$3.15 in March.

The company's Hong Kong based joint venture, Kuangchi Martin Jetpack, co-owned with its largest shareholder Kuangchi Science, has signed three “intention framework agreements” for 100 manned jetpacks and 20 simulators to unnamed parties, the company said in a statement today.

The deals are subject to agreeing procurement contacts by June 30, 2016, which will include the final price and support, it said. The agreements are said to be part of a China 'Ironman Club' concept where the companies involved provide Martin and Kuangchi science capabilities in China, which Martin says is one of the fastest-growing markets for private aviation as previously off-limit airspace is opened for civilian operations.

Last month the company signed a memorandum of understanding with Dubai Civil Defence for the intended future delivery of manned and unmanned jetpacks and simulators, along with pilot and engineer training for civil defence and fire service personnel. The initial tranche of the deal involves 20 jetpacks and simulators.

Martin Aircraft hopes to have the first deliveries of its commercial jetpack in the second half of next year and a personal jetpack available from the second quarter of 2017. It reported a $5.2 million full-year loss in August after raising $28 million in its Australian listing.

The jetpack is able to be flown by a pilot or via remote control and its potential use includes search and rescue, military, recreational, and commercial applications. It can fly for up to 30 minutes at a maximum speed of 74 kilometres an hour at an altitude of 1,000 metres.

BusinessDesk.co.nz

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