Prosys Tech to Buy Nine Aircraft Engines in $25.6M Reverse Takeover
Prosys Tech signs a letter of intent to acquire nine aircraft engines from AFD for $25.6M, triggering a name change and TSX Venture listing.
Prosys Tech Corporation announced Thursday it has signed a letter of intent with Aeronautics Fund SCA SICAV-RAIF to acquire nine aircraft engines and their associated lease contracts in a deal valued at $25.6 million, a transaction that will fundamentally reshape the Montreal-based company's business.
The deal is structured as a reverse takeover, a mechanism that allows a private entity to gain a public listing by merging with an existing public shell company. Once the transaction closes, Prosys will rebrand as AFD Aero Corporation, signaling a full pivot away from its current technology-focused identity toward the aviation asset management sector.
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As part of the financing surrounding the transaction, Prosys also announced a concurrent private placement of up to $4.75 million. The proceeds are expected to support the company's capital needs as it transitions its operations and prepares its Class A common shares for listing on the TSX Venture Exchange.
The acquisition of aircraft engines alongside active lease contracts suggests the newly renamed AFD Aero intends to operate as an aviation asset lessor — a capital-intensive but stable business model that generates recurring revenue from airline and maintenance clients who rent engines rather than purchase them outright. The nine engines represent a tangible, income-producing portfolio from day one.
No closing date for the transaction was disclosed in the announcement, and completion remains subject to customary regulatory and exchange approvals. Continue reading at GlobalNewswire.
