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Volatus AerospaceCorp. (TSXV: VOL) (OTCQB: VLTTF) (“Volatus” or “the Company”)announced today that it has signed an arm’s length definitiveagreement to acquire Syracuse-based Empire Drone Company LLC., one ofNorth America’s fastest-growing distributors and integrators forunmanned aerial systems.
WithFortune Business Insights projecting the commercial drone market togrow to $47.38 billion by 2029 at a CAGR of 28.58%, the addition ofEmpire Drone in the USA positions Volatus to capitalize on thisopportunity by adding to its growing global presence in key marketsfor green drone technologies, which includes Volatus Aerospace LATAMin South America, Omniview Tech in Canada, and iRed Remote Sensing inthe UK.
“Volatus is already amajor distributor and developer of civil and defence drone solutionsin Canada,” said Glen Lynch, CEO of Volatus Aerospace. “Theaddition of Empire Drone solidifies our footprint in America andpositions us for improved margins and accelerated growth in Americawith a US depot and US-based support.”
“Joining Volatus provides Empire with the resources needed toaccelerate our growth,” said Sean Falconer, CEO and founder ofEmpire. “We’ll become a more important partner for our existingOEM suppliers and increase our offering with Volatus technologies suchas the Aerieport remote nesting station, Hydra Crawler, and otherVolatus defence and public safety products. It’s long been my goalto be a dominant player in the United States and this deal will giveme the resources needed to get there.”
Empire Drone is expected to generate revenue of C$2.5M in 2022with a 6% EBITDA margin. Under the terms of the agreement, Volatuswill purchase 100% of the company for a cash consideration ofUS$300,000, equity of US$350,000 with a minimum floor price of $0.65,and earn out of US$350,000 paid in equity after one year anniversarybased on the 30-day volume weighted average price (VWAP) with aminimum floor price of $0.65 per share and assume the long-term debtof US$225,000.
This announcement marks another stepin a series of interrelated commercial milestones intended to driveand scale the commercialization of drone technologiesincluding:
- Announcement of Volatus Aerospace LATAM, a joint venturewith EOLO Drones S.A.C. ("EOLO") to expand Volatus'commercial operations in Latin America.
- Introduction of afull-service financing program for enterprise and industrial droneequipment to help drone service providers, public safety agencies andindustrial clients leverage the rapid evolution of relatedtechnologies by offering rental, usage contracts, and customizedfunding arrangements for the sale of its Drone Solutions targeted attransactions valued from $25,000 to over $2,000,000.
- Acquisition of iRed Remote Sensing based in Emsworth, Englandto provide a foundation for continued growth in the UK.
The acquisition ofEmpire Drone is scheduled to close on December 31st conditional onsatisfactory completion of due diligence, approval of the respectiveBoard of Directors, and regulatory approval by the Toronto StockExchange.
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-LookingInformation
This news release contains statements thatconstitute “forward-looking information” and “forward-lookingstatements” within the meaning of applicable securities laws,including statements regarding the plans, intentions, beliefs, andcurrent expectations of the Company with respect to future businessactivities and operating performance. Often, but not always,forward-looking information and forward-looking statements can beidentified by the use of words such as “plans”, “expects”,“is expected”, “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: (if) thebusiness plans and expectations of the Company; and (ii) expectationsfor 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, butinvolve known and unknown risks, uncertainties, assumptions and otherfactors that may cause the actual results, performance or achievementsof the Company 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 Company, 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 and forward-lookingstatements reflect the Company’s current beliefs and is based oninformation currently available to it and on assumptions it believesto be not unreasonable in light of all of the circumstances. In someinstances, material factors or assumptions are discussed in this newsrelease in connection with statements containing forward-lookinginformation. Such material factors and assumptions include, but arenot limited to: the commercialization of drone flights beyond visualline of sight and potential benefits to the Company; the completion ofthe Offering; meeting the continued listing requirements of the TSXV;and anticipated and unanticipated costs and other factors referencedin this news release.” Although the Company has attempted toidentify important factors that could cause actual actions, events orresults to differ materially from those described in forward-lookinginformation, there may be other factors that cause actions, events orresults to differ from those anticipated, estimated or intended. Theforward-looking information contained herein is made as of the date ofthis news release and, other than as required by law, the Companydisclaims any obligation to update any forward-looking information,whether as a result of new information, future events or results orotherwise. There can be no assurance that forward-looking informationwill prove to be accurate, as actual results and future events coulddiffer materially from those anticipated in such statements.Accordingly, readers should not place undue reliance onforward-looking information.
Neither the TSXV nor itsRegulation Services Provider (as that term is defined in the policiesof the TSXV) accepts responsibility for the adequacy or accuracy ofthis news release.
Source: Volatus Aerospace Corp.
TSXV:VOL
Contact Details
Abhinav Singhvi
+1514-447-7986
abhinav.singhvi@volatusaerospace.com
CompanyWebsite
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