Profile Renegade Venture, Inc.

Stock Exchanges: Over the Counter Bulletin Board
Symbol: OTC:BB: RDVN.OB
Symbol: RDVN
Share price: US$ 0.37 (Dec. 5, 2013)
Market cap: US$ 0 million
Shares issued: 15.74 million (issued and outstanding)
Free Float: 2,636,406 shares
Trading volume: 100,136 million shares (daily average)
Revenue 2014: US$ 36 million
Net Profit 2014: US$ 3.6 million
Date of report: December 06, 2013

Investment Highlights:

• May 2, 2012: The Company becomes an exciting aviation company when it acquires Hamilton Aerospace Technologies, Inc. in a stock-for-stock exchange. Hamilton engages primarily in the business of heavy maintenance and component overhaul on large commercial jet airliners.
• October 8, 2012: The Company announces that it has signed an agreement with General Motors Acceptance Corporation to buy the assets of Complete Controls, Inc. (CCI), a company with business similar to Hamilton’s that also engages in the service of large commercial jet aircraft and can remanufacture control surfaces and airframes, including both repair and modifications. The purchase price is $1.5 million in cash, and the purchase terms include a small down payment and payment of the balance over three years. CCI’s assets include highly sophisticated diagnostic repair facilities & equipment. Acquiring the CCI assets will allow the Company to considerably broaden the nature and sophistication of the work it does on large jetliners, and obtain lucrative contracts it cannot now accept. Operation of the CCI assets will add considerably to both the Company’s gross revenues and earnings. Hamilton will pay $1,500,000 to GMAC for the CCI assets, which have a current retail value of approximately $9 mil. As part of the CCI deal, Hamilton will take over the CCI building, an 85,000-sq. ft. facility, which is adjacent to the existing Hamilton facilities. CCI is one of only four certified AIRBUS airframe component repair facilities in North America. The Company’s management believes that the CCI assets will in a few months take its overall monthly revenues from the current level of $1.5 mil. up to $2.5 mil., and annualized revenues from $18 to $30 mil.
• Nov. 13, 2013: The Company announces Third Quarter 2013 results and continued revenue growth.

Recent Developments:

May, 2012: – The Company’s subsidiary, Hamilton Aerospace Technologies, Inc., is awarded an ANA Air sales contract on Boeing 737-200A, announces delivery of first aircraft to Falcon Air, signs an important new customer and is awarded a Pegasus Aviation contract.

June 6, 2012: The Company announces aircraft ferry/flight crew service will be a valuable marketing tool and profit center.

August 13, 2012: The Company’s subsidiary inks strategic parts alliance with World Jet Corp., a major company involved in aircraft spare parts and equipment acquisition and supply for large jets on a global basis, including all the world’s passenger fleets. Under the terms of this alliance, Hamilton will no longer do its own purchasing of parts and equipment, and World Jet will take over those functions. This alliance also will open up a $2 million credit line for Hamilton to purchase the spare parts it needs through World Jet. This alliance also will result in Hamilton paying about 25% less for parts and equipment than they have previously been spending. The combination of the credit line and discount will substantially improve Hamilton’s cash flow and improve its profit on resale of parts to its customers.

January, 2013: The Company’s subsidiary provides maintenance support for Tristar Capital LLC and signs major maintenance agreement expected to produce 2013 revenues as high as $15 million.

April 28, 2013: The Company’s subsidiary integrates aircraft for Jetran International.

May 7, 2013: The Company’s subsidiary receives the FAA’s coveted diamond award.

July 1, 2013: The Company’s subsidiary signs a major maintenance agreement expected to produce 2013 revenues as high as $15 million. The Company mentions that this is by far the largest agreement in Hamilton’s history, and it is one of the largest such agreements signed by any large aviation maintenance facility in years.

These contracts combined could mean revenues anywhere between $15M to $25M or more for Renegade signed just in the past 5 weeks. The contracts are not given out to just any company so this is a great success for the Company. If the trend continues, the Company may be able to reach contracts with other airlines and/or expand the number of airlines with the companies they recently signed with.

July 31, 2013: The Company’s subsidiary announces purchase and sale of Boeing 737 Aircraft.

August, 2013: The Company’s subsidiary agrees to contracts for maintenance on two more aircraft for Falcon Air and announces the latest purchase and sale of another Boeing 737 aircraft.

Oct. 8, 2013: The Company’s subsidiary receives Spirit of Success Award.

November, 2013: The Company is to complete a major maintenance check on a head of state configured Boeing 747SP, its subsidiary completes major contract and delivers aircraft to AeroGal and announces successful delivery of two Boeing 737 aircraft to Space World.

December, 2013: The Company announces a major new contract with Mesa Airlines along with entry into a new industry segment and a maintenance contract for another Boeing 737 aircraft and adds a second maintenance hangar.

Corporate Overview:

The Company’s subsidiary, Hamilton Aerospace Technologies, Inc., is the Company’s primary business at this time. It was formed as Hamilton Aviation, Inc. (“HAI”) in 1947 by Gordon B. Hamilton, a crony and flying buddy of Howard Hughes. Hamilton was voted into the Aviation Hall of Fame and built HAI into a renowned service facility with customers all over the world and which was very successful for many decades. HAI was a recognized industry leader, with an international reputation.

Hamilton Aerospace Technologies, Inc. (“Hamilton”) was organized on April 15, 2012, and has been fully operational only since May 2012. Hamilton engages primarily in the business of heavy maintenance and component overhaul on large commercial jet airliners. Hamilton can and does also perform modifications and repairs to these aircraft. Hamilton is operating using equipment and tooling belonging to HAI. Hamilton has signed a purchase agreement to buy these assets for $1.5 mil., and the assets have a total retail value of about $5 mil. Hamilton has obtained its own lease of the facilities and the FAA has issued Hamilton a Part 145 Air Agency Certificate, under which Hamilton operates. Virtually all of Hamilton’s employees were employees of HAI, including senior management and aviation technical experts. Hamilton also has been able to continue servicing long-term customers of HAI, such as Pegasus Aviation, a multi-billion aircraft leasing corporation. Hamilton has largely succeeded to the great reputation and industry stature of HAI. In the few months since it began operations, Hamilton already is doing $1.5 mil. in monthly revenues and has acquired such valuable customers as Falcon Air Express and courier service DHL.

Hamilton leases hangar and other facilities on a 22-acre site located at Tucson International Airport. It has the American FAA and European JAA aviation certifications.

Products and Services:

The Company’s main income streams are from jetliner heavy maintenance and component over-haul, Jetliner repair and modifications (refitting, refurbishing),
aircraft storage and aircraft leasing.

Sales and Marketing:

The U.S. aviation industry tends to run in roughly ten-year cycles and already was in a slump when the event of September 11, 2011 occurred. Many airlines and other aviation companies already weakened by the downturn in aviation were severely damaged by the dramatic slide in the industry after 9-11. Large commercial jet aircraft and aircraft parts are selling at a fraction of retail or blue-book value, and parts can be acquired in bulk as low as 10% to 15% of retail cost. Many acquisitions can be made for as little as 10-15 cents on the dollar. For aviation companies with cash, the weakened industry presents opportunities that probably will not come again for another decade.

Strategic Growth Plan:

The Company is moving aggressively to acquire aviation assets and companies that will add significantly to revenues and profits and that can be easily integrated into the Company’s aviation family of businesses. It has also established valuable commercial relationships with some of the largest names in aviation and aviation finance, such as General Motors Acceptance Corporation.

Management:

The Company will chiefly capitalize on the talent, immense experience and invaluable contacts of its principal officers: Ian Herman and John B. Sawyer. Its directors will serve until the next annual meeting of shareholders, or until their successor has been elected.
Ian Herman, Chairman, Director and Chief Executive Officer: Ian Herman is one of the U.K.’s most respected business executives, having headed the Department of Trade and Industry London and Southeast Development Board as Chairman for the British government, handling major inward investments into the U.K. During that time he evaluated and administered projects in diverse industries totaling more than $200 million. He served as Chairman and Chief Executive of the British World Airlines, where he took the group from losses of over $3 million to profits of over $3 million in 12 months and later raised $22 million in cash and converted nearly $25 million of debt to equity. For his contribution to his country’s economic development, he was honored with the coveted “Freedom of the City of London” award.

John B. Sawyer, President & Director: John was Chief Operating Officer of Hamilton Aviation, Inc. from 1998-2012, and now serves as President of Hamilton Aerospace Technologies, Inc. John attended the University of Texas (Austin) studying Aerospace Engineering. In 1986 John joined Pan American World Airways based in Berlin Germany. Subsequent to that he worked as a Production Foreman at Raytheon, a Quality Control Supervisor at TIMCO, a Heavy Maintenance Representative for World Airways, and Director of Quality Control at Federal Express Feeder. Immediately prior to joining Hamilton Aviation, Mr. Sawyer was President of Matrix Aeronautica in Tijuana.

Alan R. Abate, Vice President. Mr. Abate started his aviation career in 1976. During his early years, he earned his FAA Airframe and Powerplant certificates and honed his skills in transport category aircraft maintenance and modification. Currently, Mr. Abate is responsible for contract management and corporate administration including human resources and information systems for Hamilton.

Patricia Graham, Vice President of Finance: Since 1995, Patricia Graham has been associated with the aviation industry, serving as Divisional Controller for IAC Complete Controls, Inc., as Regional Controller for American Aircarriers Support, Inc., and as Controller and Corporate Officer for Evergreen Air Center, Inc. prior to joining Hamilton Aerospace. She has over 15 years history in accounting, fiscal planning and budgetary operations, as well as 5 years of public accounting experience.

Philip S. Watkins, Director of Maintenance: Phil joined Hamilton Aerospace on May 6, 2012 as the Director of Maintenance.

Gordon D. (Dito) Hamilton, Director: The son of Hamilton Aviation’s founder, Dito is currently providing consulting services to Hamilton Aerospace, and it is anticipated that he will join full time once he has completed the wind-down of Hamilton Aviation.

Capital Structure:

The enterprise value of Hamilton is huge, since to duplicate it and bring it to the point of commencing commercial operations would cost an absolute minimum of $10-15 million. The Company is operating successfully and experiencing strong revenue growth, but is growing its business out of cash flow. The slump in the aviation industry presents extraordinary opportunities, and in order to take advantage of them, the Company’s management seeks to accelerate the company’s funding pace. If funding can be raised to exploit the opportunities it is seeing virtually every day, Renegade could grow to US1 billion in revenues. For example, a Boeing 767 jetliner can be purchased for $4 mil. and refurbished for an additional $3 mil., and the plane would appraise for $15-20 mil. and could be leased or sold with a high profit margin to an aviation operator at prices or lease rates well below current market. The Company would have a buyer or lessee for the plane before buying it. For example, General Motors Acceptance Corp. (GMAC) has repossessed over a hundred jetliners that can be purchased on very generous terms at 25-35% of retail value. The aviation slump gives the Company the chance to quickly build a huge and profitable business at a fraction of the normal entry cost. These bargains are transitory, however, since the industry eventually will recover from the current downturn.

Financial Projections:

The following figures apply to Hamilton and CCI only:

Revenues – 2013:$30 mil., 2014: $36 mil., 2015: $43 mil.
Profit – 2013:$2.5 mil., 2014: $3.6 mil., 2015: $5.0 mil.
Net Profit – 2013:$ 0,4 mil., 2014: $ 2,1 mil., 2015: $ 2,9 mil.
Earnings per Share – 2013: N/A, 2014: $ 0,14, 2015: $ 0,19

The enterprise value is $12-$15 mil.

Summary:

The Company is poised to become a force in the world aviation marketplace. It has established valuable commercial relationships with some of the largest names in aviation and aviation finance, such as General Motors Acceptance Corporation (GMAC), Pegasus Aviation, and DHL.

Conclusion:

The Company’s previous record has been very strong. It has been signing big agreements with major companies in the aviation industry, and if the trend continues, the Company should be a rewarding investment.