SNELLVILLE, Ga., Aug. 25, 2013 /PRNewswire/ -- LMK Global Resources Inc., (OTCQB: "ALAS," formerly "VERL") today announced that on June 22, 2013, it entered into a share exchange agreement with Arnold Leonora and Air Transport Group Private Equity, Inc. ("ATG") for full financial ownership rights and control of Madrid, Spain based Corporacion Ygnus Air, S.A. ("Cygnus") and agreed to change its name to Alas Aviation Corp. and apply to change its common stock ticker symbol from VERL to ALAS. Cygnus operates two Boeing 757-200 cargo jets under "Wet Lease" Aircraft Crew Maintenance Insurance contracts with Iberia Airlines and TNT Express out of Madrid, Spain and Liege, Belgium, with 2012 Deloitte & Touche Audited revenues of 19.55M Euros or $25.4M.
Under the agreement the 40 plus employee Cygnus, founded in 1994, becomes LMK/ALAS' first aviation operating company subsidiary. The transaction has closed into escrow pending ATG's delivery of a PCAOB certified financial audit which meets US accounting standards, and is expected to be completed by mid September, and the successful refinancing of old Cygnus debt guaranteed by former shareholders by October 31, 2013. Failure to secure refinancing by the October 31 deadline could prevent ATG and Leonora from delivering Cygnus shares to ALAS unencumbered if an extension cannot be obtained from Cygnus' former controlling shareholder Imesapi, S.A., a member of Grupo ACS, a large publicly traded Spanish construction services conglomerate. In furtherance of the agreement signed by LMK CEO Frank Dreschler, Leonora has replaced Dreschler as CEO and Leonora is appointing a new leadership team. Upon completion of the audit, the refinancing, and the closing out of escrow, Leonora and his teams at the ALAS and Cygnus levels plan to put their organic and acquisition growth plans into action which call for the addition of new cargo planes and a relaunch of Cygnus passenger services to various locations worldwide and the acquisition of other regional cargo and passenger airlines globally.
"We are very pleased to complete the share agreement and to move forward with finalizing our acquisition plans," said Arnold Leonora, CEO of Alas Aviation Corp. "This acquisition represents an exceptional opportunity for us to acquire high margin assets at a value that offers us the opportunity to leverage cost efficiencies while serving as a foundation upon which to expand our routes and our global footprint," he continued.
About Alas Aviation Corporation
Alas Aviation Corp. (ALAS) is a niche operator of air cargo and related ground service operators through its sole operating subsidiary Corporacion Ygnus Air, S.A. ("Cygnus"). Cygnus operates two Boeing 757-200 cargo jets under "Wet Lease" Aircraft Crew Maintenance Insurance ("ACMI") contracts with Iberia Airlines and TNT Express out of Madrid, Spain and Liege, Belgium. ALAS seeks to maximize shareholder value through organic growth and strategic acquisitions both regionally and globally.
Safe Harbor Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements as a result of various factors and other risks, including those set forth in the Company's current reports filed with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and the Company undertakes no obligation to update such statements.
SOURCE Alas Aviation Corporation