CybAero applying for new export license after rejection

CybAero applying for new export license after rejection

23-Oct-2014 Source: CybAero

CybAero signed a framework agreement with Chinese company AVIC for delivery of at least 70 helicopter systems in total, with at least 20 in the first three years and at least 50 the following five years. CybAero applied for an export license from ISP on September 8th and supplemented its application on September 30th with a request for a license to deliver only the first 20 systems in the next two years.

On October 17th, ISP announced that it will not grant the export license on the basis of CybAero’s application. Some of the questions ISP had include where the first 20 helicopter systems will be manufactured. CybAero is now talking with ISP and the company will submit a new application based on these discussions with a clearer description of its framework agreement with AVIC, as well as the production and use of the systems.

The systems will only be used for civilian applications, such as power line inspection, environmental condition monitoring, surface mine inspection and similar applications.

“Our original export license application was for all 70 helicopter systems, but we only applied for the first 20 in the supplement submitted in September, since ISP can only grant licenses for a maximum of two years at a time. We believe that the process of having submitted an initial export application and then a supplement may have led to uncertainty resulting in ISP’s decision to not grant the application,” says Mikael Hult, CEO of CybAero. “We will therefore submit a new, clearer application this week.”

ISP’s decision is without a doubt a bump in the road for CybAero’s plans, but since the first deliveries to AVIC are planned for Q2 2015, there is time to clarify the export license application. “In the meantime, we will continue with our marketing, both in China, where we will participate in a trade fair in November, and in other markets,” says Mikael Hult. “We have seen a substantial increase in interest for our products from around the world.”

About CybAero

CybAero develops, manufactures and markets autonomous unmanned helicopters (VTOL UAVs) with associated sensor systems for use in both civilian and military applications. CybAero was founded in 2003, but the foundation of its business were laid in 1992 through research collaboration between Linköping University and the Swedish Defense Research Agency (FOI). CybAero is now established as a global VTOL UAV leader. The Company’s APID product attracts much attention globally for being user-friendly, robust and price-efficient. CybAero’s head office is in the Mjärdevi Science Park, in Linköping, Sweden. The company has over 40 employees and has been listed on the NASDAQ OMX First North since 2007. Remium Nordic AB (08 – 454 32 00) is the company’s certified adviser.

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