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Volatus AerospaceCorp. (TSXV: VOL) (OTCQB: VLTTF) ("Volatus" or "theCompany") announced today that it has signed an arm's lengthdefinitive agreement dated Oct 12, 2022, to acquire Alberta-basedSynergy Aviation Ltd. This acquisition will solidify Volatus’position in Western Canada providing privileged access to much of theoil and gas industry. Synergy’s leadership in the sector combinedwith Volatus’ drone technology solutions will position the Companywith a strong competitive advantage to introduce innovative,efficient, green, remotely operated drone solutions to fulfillregulatory and asset monitoring requirements.
Founded in Alberta in2014, Synergy Aviation is an industry leader in aerial surveillance,pipeline integrity monitoring, and specialized geomatics, patrollingand inspecting more than 500,000 KM of pipeline right of waystretching from the coast of British Columbia to the Manitoba/USborder. The company provides Canada’s largest oil & gasproducers and pipeline operators with uninterrupted, consistent andhighly detailed right-of-way integrity data.
“Pipeline inspection,much like other long linear inspection requirements, has traditionallybeen completed using crewed helicopters and small fixed wingaircraft,” said Glen Lynch, CEO of Volatus Aerospace. “LeveragingSynergy’s oil & gas presence combined with our existing pipelineoperations in Ontario will allow us to introduce the power ofinnovative drone solutions to meet regulatory compliance and assetmanagement requirements with improved efficiencies and a materialreduction in greenhouse gas emissions.”
“There are nearly 5 million kilometers of oil & gaspipeline in North America requiring annual inspections and, in manycases, weekly patrols to meet regulatory and asset managementrequirements,” said Todd Tkach, President of Synergy Aviation.“Becoming part of Volatus gives us the added geomatics capabilities,market reach, and the opportunity to disrupt traditional methods inthis sector.”
Synergy recordedunaudited revenues of $7 million with a 14% EBITDA (Earnings beforeInterest, tax, depreciation, and amortization) during the first ninemonths of 2022 and is targeting year end revenues of $9 million. Underthe terms of the agreement, Volatus will make an equity investment of$2.29 million in Synergy Aviation over the course of 10 months fromclosing in exchange for newly issued shares that will represent 51% ofall outstanding shares. The investment will be used by Synergy forongoing expansion activities. The transaction is scheduled to close onOctober 31 st conditional on satisfactory completion of duediligence, approval of the respective Board of Directors, andregulatory approval by the TSX Venture Exchange. Subject tooperational and financial metric as defined in the definitiveagreement, the Synergy investors will have an option, expiring inDecember 2024, to sell the remaining 49% equity to Volatus at the samevaluation at Closing in exchange of Volatus shares based on 30 daysVWAP (volume weighted average price) on date of Closing.
This announcement marks another step in aseries of interrelated technology, regulatory, and commercialmilestones intended to drive and scale the commercialization of dronetechnologies. Recent announcements include the launch of the Aerieportdrone nesting station, regulatory authority to remotely operate adrone at an airport, the remote operation of drones in Las Vegas fromour operations center 3,000 km away, and most recently, acollaboration agreement with Accipiter Radar to provide for largerscale deconfliction between drones and low flying aircraft. Thecombination of these events with other Volatus technologies provideslarge scale opportunities in oil and gas, power distribution, and railthroughout the markets served by Volatus.
About Volatus Aerospace:
VolatusAerospace Corp. is a leading provider of integrated drone solutionsthroughout North America and growing into Latin America and globally.Volatus serves civil, public safety, and defense markets with imagingand inspection, security and surveillance, equipment sales andsupport, training, as well as R&D, design, and manufacturing.Through our subsidiary, Volatus Aviation, we are introducing green andinnovative drone solutions to supplement and replace traditionalaircraft and helicopters for long-linear inspections such as pipeline,energy, rail, and cargo services. Volatus is committed to carbonneutrality; the fostering of a safe, equitable and inclusiveworkplace; and responsible governance.
Forward-LookingStatement
This news release contains statements thatconstitute “forward-looking information” within the meaning ofapplicable securities laws, including statements regarding the plans,intentions, beliefs and current expectations of the Corporation withrespect to future business activities and operating performance.Often, but not always, forward-looking information can be identifiedby the use of words such as “plans”, “expects”, “isexpected”, “budget”, “scheduled”, “estimates”,“forecasts”, “intends”, “anticipates”, or “believes”or variations (including negative variations) of such words andphrases, or statements formed in the future tense or indicating thatcertain actions, events or results “may”, “could”,“would”, “might” or “will” (or other variations of theforegoing) be taken, occur, be achieved, or come to pass.Forward-looking information includes information regarding (i) thebusiness plans and expectations of the Corporation; and (ii)expectations for other economic, business, and/or competitive factors.Forward-looking information is based on currently availablecompetitive, financial and economic data and operating plans,strategies or beliefs as of the date of this news release, but involveknown and unknown risks, uncertainties, assumptions and other factorsthat may cause the actual results, performance or achievements of theCorporation to be materially different from any future results,performance or achievements expressed or implied by theforward-looking information. Such factors may be based on informationcurrently available to the Corporation, including information obtainedfrom third-party industry analysts and other third-party sources, andare based on management’s current expectations or beliefs. Any andall forward-looking information contained in this news release isexpressly qualified by this cautionary statement. Investors arecautioned that forward-looking information is not based on historicalfacts but instead reflects expectations, estimates or projectionsconcerning future results or events based on the opinions, assumptionsand estimates of management considered reasonable at the date thestatements are made. Forward-looking information reflects theCorporation’s current beliefs and is based on information currentlyavailable to it and on assumptions it believes to be not unreasonablein light of all of the circumstances. In some instances, materialfactors or assumptions are discussed in this news release inconnection with statements containing forward-looking information.Such material factors and assumptions include, but are not limited to:the impact of the COVID-19 pandemic on the Corporation; meeting thecontinued listing requirements of the TSXV; and anticipated andunanticipated costs and other factors referenced in this news releaseand the Circular, including, but not limited to, those set forth inthe Circular under the caption “Risk Factors”. Although theCorporation has attempted to identify important factors that couldcause actual actions, events or results to differ materially fromthose described in forward-looking information, there may be otherfactors that cause actions, events or results to differ from thoseanticipated, estimated or intended. The forward-looking informationcontained herein is made as of the date of this news release and,other than as required by law, the Corporation disclaims anyobligation to update any forward-looking information, whether as aresult of new information, future events or results or otherwise.There can be no assurance that forward-looking information will proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-lookinginformation.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accept responsibility for the adequacy or accuracyof this release.
Source: Volatus Aerospace Corp.
TSXV:VOL
Contact Details
Abhinav Singhvi
+1833-865-2887
abhinav.singhvi@volatusaerospace.com
CompanyWebsite
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