AMPRIOR, ON / ACCESS Newswire / July 23, 2025 / Plaintree Systems Inc. today announced its intention to initiate an orderly wind-down of the business and operations of its wholly owned subsidiary, Summit Aerospace USA Inc. Following its closure, Plaintree will proceed with the liquidation of Summit's assets.
The primary reason for the decision is due to a material reduction in business from one of Summit's major customers, which business is unlikely to recover. This decision also reflects the Company's ongoing commitment to operational efficiency and strategic alignment. By streamlining its business and focusing on core growth areas, Plaintree aims to position itself for long-term success and value creation for shareholders.
In fiscal 2025, the revenue generated by the Summit Aerospace USA Inc. business was $2,408,450 and represented 10.1% of Plaintree's consolidated revenue and its net loss before income tax and other expenses was $416,058 representing 52.4% of the consolidated net loss before income tax and other expenses. Summit Aerospace USA Inc. represents 11.7% of Plaintree's consolidated total assets.
"This was not a decision we made lightly," said David Watson, CEO of Plaintree Systems. "Summit Aerospace has contributed significantly to our journey, and we are proud of what our U.S. team has accomplished. However, after a careful consideration of the likelihood of future business, the decision is the correct one for Plaintree at this time. By completing this transition, it enables us to reallocate resources and pursue new opportunities for our continuing businesses with greater agility."
It is the current plan to totally cease Summit's operations on or about August 15, 2025. The wind-down and asset liquidation will be conducted in a structured manner to ensure minimal disruption to employees, customers, and stakeholders. Plaintree remains committed to transparency and will provide timely updates as the process unfolds.
About Plaintree Systems
Plaintree has two diversified product lines consisting of Specialty Structures and Applied Electronics.
The Specialty Structures Division includes the Triodetic Group with over 40 years of experience, is a design/build manufacturer of steel, aluminum and stainless steel specialty structures such as commercial domes, foundations for unstable soil conditions and flood zones, for free form structures, barrel vaults, space frames and industrial dome coverings, and Spotton Corporation, a design and manufacturer of high end custom hydraulic and pneumatic valves and cylinders.
The Applied Electronics Division includes the legacy Hypernetics, Summit Aerospace USA Inc. and Elmira Stove Works Inc. businesses. Hypernetics was established in 1972 and is a manufacturer of avionic components for various applications including aircraft antiskid braking, aircraft instrument indicators, solenoids, high purity valves and permanent magnet alternators. Summit Aerospace USA Inc. provides high precision machining to the aerospace and defense markets. Our facility includes 5 axis CNC precision machining of complex castings and large ring parts such as turbine and assembly shrouds as well as assembly & pressure seals. Summit will support requirements from concept, prototype and throughout production. Elmira Stove Works Inc a manufacturer of high-end heritage and retro-styled kitchen appliances under the brand names "Northstar", "Fireview" and "Heritage".
Plaintree's shares are traded under the symbol "NPT". Shareholders and Investors can access Company information on CSE's website and receive full Company disclosure monthly. For more information on Plaintree or to receive stock quotes, complete with trading summaries, bid size and ask price, brokerage house participation, insider reports, news releases, disclosure information, and CSE and SEDAR filings, visit the CSE website at www.cnsx.ca or the Company's website at www.plaintree.com.
Plaintree is publicly traded in Canada on the CSE (NPT) with 12,925,253 common shares and 18,325 class A preferred shares outstanding.
This press release may include statements that are forward-looking and based on current expectations. The actual results of the company may differ materially from current expectations. The business of the company is subject to many risks and uncertainties, including changes in markets for the company's products, delays in product development and introduction to manufacturing and intense competition. For a more detailed discussion of the risks and uncertainties related to the company's business, please refer to documents filed by the company with the Canadian regulatory authorities, including the annual report of the Company for the fiscal year ended March 31, 2024 and related management discussion and analysis.
Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
For further information: Rob Turley, CFO (613) 623-3434 x2282
SOURCE: Plaintree Systems, Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/plaintree-systems-inc.-announces-strategic-wind-down-of-u.s.-subs-1051990
