Acquisition of Aeronautical Assets from AFD For $25.6 Million – Name Change – Consolidation – Announcement of a Concurrent Private Placement of Up to $4.75 Million

Prosys Tech Corporation has signed a letter of intent to acquire aeronautical assets—specifically nine aircraft engines and associated lease agreements—from Aeronautics Fund SCA SICAV-RAIF for $25.6 million. This transaction represents a reverse takeover that will fundamentally reshape Prosys' operational focus from its current business model into aerospace asset management and leasing operations.

The deal includes a concurrent private placement of up to $4.75 million, suggesting capital restructuring to support the acquisition and transition. The corporation will undergo a name change to AFD Aero Corporation and seek listing of its Class A shares on the TSX Venture Exchange, indicating a reorganization of ownership structure and governance aligned with the new business direction.

The transaction's timing and structure signal a consolidation play within the aviation leasing sector, a niche market with cyclical exposure to airline capacity cycles and aircraft utilization rates. The move from a generic tech platform to specialized aerospace asset ownership introduces significant operational and regulatory complexity, including maintenance obligations, lessor liability, and engine lifecycle management risks.

Sector implication: This is a microcap reorganization with limited systemic market impact. The Industrials sector exposure is concentrated in the specialized aviation leasing subsegment rather than broad industrial activity. Investors should monitor post-transaction operational execution, lease counterparty creditworthiness, and aircraft engine commodity price movements as key performance drivers.