6th Apr 2016 06:39
LONDON (Alliance News) - Drone maker Strat Aero PLC on Wednesday confirmed it has filed legal action against the boss of a former subsidiary, alleging fraud and misrepresentation.
Strat Aero said the action has been filed against W Hulsey Smith, the former chairman and chief executive of Strat Aero subsidiary Aero Kinetics.
Strat Aero said the action alleges fraud and breach of contract arising from misrepresentations Hulsey Smith made and which were material in the company's decision to acquire Aero Kinetics in December 2015.
A number of possible resolutions for Strat Aero are on the table, it said, including rescinding the deal to acquire Aero Kinetics, in addition to actual and consequential damages.
Strat Aero said it expects Hulsey Smith will launch a counter claim, but the company has received advice that such a move would be unlikely to have any merit.
Strat Aero added it currently has sufficient cash resources for the near term but expects to raise further funds in the current quarter of 2016 to support working capital.
By Sam Unsted; [email protected]; @SamUAtAlliance
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