Wednesday (November 9th) was a good news day for FLYHT as management discussed its second consecutive profitable quarter with shareholders only to be followed that afternoon by a presentation where the company received a $2.35 million interest-free loan from the Western Innovation (WINN) Initiative.
The WINN funding will be used to “support plans for technology development in the air and ground components of FLYHT’s satellite/aircraft communications systems” up to December 2018. The loan is to re-paid between January 2020 and December 2024.
This is most welcome news as investors are waiting to see how the company addresses $3.2 million in convertible debenture coming due on December 23, 2016. The conversion price of the debentures is $0.25 per share. The WINN funds provide the company with considerable breathing room as this loan meets much of the future capital required for ongoing projects.
CEO Tom Schmutz has publicly stated that the company is on track to grow a minimum of 30% this year independent from the IP sale made in the second quarter. Next year’s organic growth is expected to be in the same range before new larger opportunities, that management believes it will secure. The last financial report showed that the company has over $3.8 million in cash and $1.5 million in receivables.
Even though the company has been showing growth and executing on its business plan the stock has continued to trade in a very narrow range of $0.18 to $0.22 since the summer of 2015.
To read the news release on the WINN interest-free loan to FLYHT, please click here.