Background:  Comp Air has a long term business plan that includes several models of existing aircraft and a marketing plan for the USA and globally.  Due to unique timing that will leverage market demand for a small and very efficient six seat aircraft.  Comp Air intends to initiate a strategy for full development and construction of the Comp Air 6.2.  The Comp Air 6.2 has been part of the longer term product portfolio and part of the strategic plan but accelerating this airplane under a unique investment strategy will provide significant return for investors, economic benefits to the Space Coast area of Florida, and an incremental increase in the value to Comp Air equity owners.

     The Incremental Plan:  Over the next 10 months a strategy is being put in place to build and demonstrate a fully operational prototype of the Comp Air 6.2.  This prototype will be for marketing/sales purposes and may be ultimately sold to an investor, depending on the strategic desire of the investor.  This prototype will create an order process from the U.S. general aviation market, and also demonstrate the utility of such an airplane for use in developing countries throughout the world.    Building the comp Air 6.2 prototype will require additional funding since its acceleration does not allow for funding through the existing free cash flow from operations.  Therefore a unique and specific investor offering is being proposed for this Comp Air 6.2 strategy.  It is estimated that Comp Air will require $500 thousand of incremental funding, and will be used over a 10 month period.  The investment will support the final design specification and construction, and culminate with the flight testing of the airplane that demonstrates the full array of capabilities.

     The Funding Proposal:  Comp Air will utilize a two tier funding strategy to build the Comp Air 6.2 prototype. As part of this funding strategy a new company will be formed as an LLC under the laws of the state of Florida.  This company is named CA6.2 Build, LLC.  CA6.2 Build will be the sole and legal owner of the prototype aircraft built by Comp Air Aviation.

     $500 thousand of the total funding required will be raised by sale of equity ownership in CA 6.2 Build, LLC.  100% of equity invested in the CA 6.2 Build project will be solely used for the final design and construction of this prototype.  It is anticipated that a strategic investor would use this equity position and ownership of the Comp Air 6.2 as a staged investment strategy to test the capabilities of Comp Air Inc., and both its leadership and operational teams .   The investor that provides the $500 thousand in equity investment will receive 100% ownership of CA 6.2 Build, LLC.  $200 thousand of the funding required to build the prototype will be raised through grants and public matching funds tied to high tech job creation and an export market development strategy for Central Florida. 

     The Investment Return:  Over a three year horizon the strategic equity investor who funds this acceleration strategy for the Comp Air 6.2 will earn a very attractive return on their investment through the following business plan:

    Comp Air will offer two different methods for repayment of the $500,000 raised for the construction of the prototype.

   Option 1.  Comp Air will allow the investor to keep the prototype, with the agreement that Comp Air will be allowed to use the prototype for 3 air shows per year until Comp Air builds it’s  own demo plane. Using the cash funds from down payment on confirmed orders, Comp Air will pay the investor $500,000 payable after month 24. Payments will be in (4) $125,000 quarterly payments.

    Option 2.  Comp Air Aviation will use the $700 thousand total capital raised to construct the prototype and create lead time demand for production.  It is anticipated that orders will be confirmed once delivery schedules based on manufacturing capacity is confirmed.  Using the cash funds from down payment on confirmed orders, Comp Air will purchase the CA6.2 prototype from CA6.2 Build, LLC. at a committed total price of $1.4 million.  Using these proceeds from Comp Air Aviation, the CA6.2 Build, LLC. will pay off and close all debt accounts that were established under the original funding agreement.  The residual cash in CA6.2 Build, LLC after this two year period will be disbursed to the investor over 5 sequential quarters and CA14 Build, LLC. will be closed.  The proceeds to the investor will generate an approximate 30% annual compounded return to investors on the original equity investment.  An option will be available to investor to roll over the proceeds of this investment into an equity ownership position in Comp Air Aviation as the CA6.2 is produced to meet a growing market demand.  Such reinvestment would create a further compounding of the return to the investor as the value of Comp Air Inc. increases.

   The investor will enjoy security through the continuous ownership of the prototype and associated tooling. The market value of the completed prototype will exceed $350,000 this will minimize the exposure of the  investor.

   Comp Air will need $200,000 up front to begin the prototype, we need to purchase materials and pay some deposits on long lead time components. Over the following 10 months $30,000/month payments will ensure steady progress to meet our goal of a 10 month completion.