iFLY calls on Indoor Skydive Australia Group to back down from its announced breach of contract
- ISAG's plans in Malaysia breach pre-existing agreements with iFLY
- iFLY reserves right to prevent ISAG from using vertical wind tunnels in Penrith, Perth and the Gold Coast if the breach is not corrected within 30 days
AUSTIN, Texas, Sept. 20, 2017 /PRNewswire/ -- iFLY Holdings, LLC and its subsidiary SkyVenture International, Ltd (collectively, "iFLY") today issued written notice to ASX listed Indoor Skydive Australia Group Limited (ASX: IDZ) and its affiliates (collectively, "ISAG") that ISAG is in material breach of various agreements between the parties.
As stated by ISAG in its 1 November 2012 Prospectus for its Initial Public Offering, each license agreement authorizing ISAG to operate iFLY vertical wind tunnels ("VWTs") in Penrith, Perth and the Gold Coast, "restricts ISAG from directly or indirectly acquiring access to VWTs from other suppliers (than iFLY) during the term of the agreement and for 2 years thereafter."
In return for access to proprietary iFLY systems, processes and know how, ISAG further promised not to compete with or assist others in competing with iFLY. Nevertheless, in public statements on 14 February 2017, 1 May 2017 and 4 July 2017, ISAG declared its intention to develop, construct and operate an indoor skydiving facility in Malaysia with equipment provided by a third-party manufacturer. This constitutes a material breach of ISAG's various agreements with iFLY.
On 4 September 2017, ISAG further announced that it entered into a binding memorandum of understanding with a third party for development, construction and operation of indoor skydiving facilities across China, including Hong Kong. Use of third party manufactured VWTs in such projects would also constitute a material breach of ISAG's various agreements with iFLY.
iFLY reserves all of its various legal rights in connection with this matter, including obtaining a court-ordered injunction to halt construction and operation of the proposed Malaysian facility. In addition, if these material breaches are not corrected within 30 days, iFLY has discretion to terminate the agreements and associated licenses and prohibit ISAG from further use of the Penrith, Perth and Gold Coast VWTs. In that event, iFLY also has the right to prevent ISAG from using its highly regarded "iFLY" brand or any of iFLY's world-leading support, safety and training programs or operational expertise. In addition, iFLY holds numerous patents on the technology used in ISAG's and other competitor's wind tunnels, and iFLY fully intends to enforce its rights to prevent unauthorized use of its patented technology.
iFLY General Counsel Kevin Fiur commented, "iFLY's technology has brought the thrill of indoor skydiving to thousands of Australians. We look forward to flying with many more in the months and years ahead. iFLY intends to vigorously protect our rights, and we call on ISAG to do the right thing, honour their agreement, and work with us to grow the iFLY brand across Australia."
About iFLY Indoor Skydiving: Austin-based iFLY Holdings, LLC., is the world leader in design, manufacturing, sales and operations of wind tunnel systems for indoor skydiving. The company has flown more than 8,000,000 people in a dozen countries and at sea since launching the modern vertical wind tunnel industry in 1998. iFLY has more than 60 facilities operating worldwide with 28 wholly-owned in the US and has significant growth plans across the globe in the next 24 months. iFLY supports and utilizes the safety and training guidelines set out by the International Bodyflight Association (IBA) to ensure safety and progression of the sport of indoor skydiving. For more information on iFLY, visit www.iflyworld.com or follow us on Facebook, Instagram and YouTube.
Contact: Edelman, [email protected]
SOURCE iFLY Holdings, LLC
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