Plaintree Systems Inc. Announces Strategic Wind-Down of U.S. Subsidiary, Summit Aerospace USA Inc.
Plaintree Systems (PTEEF) has announced the strategic wind-down of its wholly-owned subsidiary, Summit Aerospace USA Inc., with operations set to cease around August 15, 2025. The decision comes after a significant reduction in business from a major customer, with recovery deemed unlikely.
Summit Aerospace generated $2.4M in revenue in fiscal 2025, representing 10.1% of Plaintree's consolidated revenue, while recording a net loss of $416,058 (52.4% of consolidated net loss). The subsidiary accounts for 11.7% of Plaintree's consolidated total assets. The company plans to conduct an orderly liquidation of Summit's assets, focusing on minimizing disruption to stakeholders.
Plaintree Systems (PTEEF) ha annunciato la chiusura strategica della sua controllata al 100%, Summit Aerospace USA Inc., con la cessazione delle attivit脿 prevista intorno al 15 agosto 2025. La decisione 猫 stata presa a seguito di una significativa riduzione degli affari con un cliente principale, con scarse probabilit脿 di ripresa.
Summit Aerospace ha generato un fatturato di 2,4 milioni di dollari nell'anno fiscale 2025, pari al 10,1% del fatturato consolidato di Plaintree, registrando una perdita netta di 416.058 dollari (il 52,4% della perdita netta consolidata). La controllata rappresenta l'11,7% del totale degli attivi consolidati di Plaintree. L'azienda prevede una liquidazione ordinata degli asset di Summit, con l'obiettivo di minimizzare le ripercussioni sugli stakeholder.
Plaintree Systems (PTEEF) ha anunciado la liquidaci贸n estrat茅gica de su subsidiaria de propiedad total, Summit Aerospace USA Inc., con la intenci贸n de cesar operaciones alrededor del 15 de agosto de 2025. La decisi贸n se tom贸 tras una reducci贸n significativa en el negocio con un cliente importante, consider谩ndose improbable la recuperaci贸n.
Summit Aerospace gener贸 2,4 millones de d贸lares en ingresos en el a帽o fiscal 2025, representando el 10,1% de los ingresos consolidados de Plaintree, y registr贸 una p茅rdida neta de 416.058 d贸lares (52,4% de la p茅rdida neta consolidada). La subsidiaria representa el 11,7% del total de activos consolidados de Plaintree. La empresa planea realizar una liquidaci贸n ordenada de los activos de Summit, enfoc谩ndose en minimizar la interrupci贸n para los interesados.
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Plaintree Systems (PTEEF) a annonc茅 la cessation strat茅gique de sa filiale d茅tenue 脿 100 %, Summit Aerospace USA Inc., dont les op茅rations devraient s鈥檃rr锚ter aux alentours du 15 ao没t 2025. Cette d茅cision fait suite 脿 une forte r茅duction des activit茅s avec un client majeur, avec peu de chances de reprise.
Summit Aerospace a g茅n茅r茅 un chiffre d鈥檃ffaires de 2,4 millions de dollars au cours de l鈥檈xercice 2025, repr茅sentant 10,1 % du chiffre d鈥檃ffaires consolid茅 de Plaintree, tout en enregistrant une perte nette de 416 058 dollars (52,4 % de la perte nette consolid茅e). La filiale repr茅sente 11,7 % du total des actifs consolid茅s de Plaintree. L鈥檈ntreprise pr茅voit une liquidation ordonn茅e des actifs de Summit, en mettant l鈥檃ccent sur la minimisation des perturbations pour les parties prenantes.
Plaintree Systems (PTEEF) hat den strategischen R眉ckzug seiner hundertprozentigen Tochtergesellschaft Summit Aerospace USA Inc. angek眉ndigt, deren Betrieb voraussichtlich um den 15. August 2025 eingestellt wird. Die Entscheidung erfolgte nach einem erheblichen R眉ckgang der Gesch盲fte mit einem wichtigen Kunden, wobei eine Erholung als unwahrscheinlich angesehen wird.
Summit Aerospace erzielte im Gesch盲ftsjahr 2025 einen Umsatz von 2,4 Mio. USD, was 10,1% des konsolidierten Umsatzes von Plaintree entspricht, und verzeichnete einen Nettoverlust von 416.058 USD (52,4% des konsolidierten Nettoverlusts). Die Tochtergesellschaft macht 11,7% der konsolidierten Gesamtaktiva von Plaintree aus. Das Unternehmen plant eine geordnete Liquidation der Verm枚genswerte von Summit, mit dem Ziel, die Auswirkungen auf die Stakeholder zu minimieren.
- Strategic decision to eliminate underperforming business unit that contributed 52.4% of consolidated net loss
- Opportunity to reallocate resources to more profitable core businesses
- Planned orderly wind-down process to minimize stakeholder disruption
- Loss of $2.4M revenue stream (10.1% of consolidated revenue)
- Material reduction in business from major customer
- Liquidation of 11.7% of consolidated total assets
AMPRIOR, ON / / 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
"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.
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FAQ
Why is Plaintree Systems (PTEEF) closing Summit Aerospace USA Inc.?
When will Summit Aerospace USA Inc. cease operations?
What percentage of Plaintree Systems' revenue came from Summit Aerospace in fiscal 2025?
How much did Summit Aerospace contribute to Plaintree's losses in fiscal 2025?
What will happen to Summit Aerospace's assets after the closure?
