Adam lands funding for A700 jet; $105 million also will speed work on piston model

June 21, 2007
Order backlog at $800 million

Adam Aircraft says a new infusion of cash will help it finish developing and testing its much-hyped A700 jet, among other things.

The Arapahoe County-based company announced Tuesday that it landed $105 million from a group led by Morgan Stanley Senior Funding.

Adam Aircraft said the money will fund the company as it looks to win final federal certification of its A700 - one of an emerging type of aircraft known as very light jets. It hopes to receive the certification by the end of the year, or early in 2008, and begin delivering the planes shortly after.

The $2.2 million jet weighs about as much as a sport utility vehicle and features two engines mounted on the fuselage. It has space for up to six passengers and can travel as fast as 390 mph.

The target market is business executives and others who want to bypass the hassles of commercial flying.

Adam Aircraft also will use the money to accelerate production of its A500 piston airplane, which it has begun delivering to customers on a limited basis.

"This is really about getting production squared away . . . and getting certification," said Chris Naro, chief financial officer of Adam Aircraft. "Producing planes is the goal of the company."

Adam said it has an order backlog for the planes totaling $800 million.

Last year, Adam landed $93 million in venture capital, ranking as one of the largest deals in the state.

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