Volatus Aerospace Corp. and Drone Delivery Canada Corp. have entered into a business combination agreement to combine the companies in a merger of equals transaction, with the combined company to continue under the name “Volatus Aerospace Corp.”.
Subject to approval of the TSX Venture Exchange, the combined companies will also continue trading under the ticker “FLT”.
Drone Delivery Canada is an award-winning drone technology company focused on the design, development, and implementation of its proprietary technologies for remotely piloted aircraft operations with an emphasis on cargo delivery. Volatus is a leader in the operation of piloted and remotely piloted aircraft systems.
Under the Merger, which the boards of directors of both companies have approved, the combined company will be led by a board of directors and management team of experienced drone technology industry and business leaders, bringing together the cultures, strengths, and capabilities of both companies.
By joining forces, Volatus and Drone Delivery Canada plan to immediately begin commercialization efforts, which is intended to enhance shareholder value by forging a robust, financially sound enterprise focused on immediate and long-term revenue with a clear path to sustainable growth and market leadership. Subject to customary closing conditions, the Merger is expected to close in the third quarter of 2024.
To date, Drone Delivery Canada has invested $40 Million into building strong, competitive drone cargo solutions that are now ready to go to market. By focusing on drone services, training, and equipment sales, Volatus is well-positioned to leverage these technologies and bring them to market.
As regulations begin to enable the commercialization of drone cargo and remote drone operations, Volatus has been planning to commercialize its efforts in Advanced Air Mobility, adding to its go-to-market strategy.
Without technology such as Drone Delivery Canada’s remote operations centre; Flyte management software; DroneSpot infrastructure; and cargo-focused, commercialized aircraft, the path to competitively enter the Advanced Air Mobility market would require significant research and development investment for any drone-based services company.
The combined company, with its shared decades of technology and aviation experience as well as strong financial and operating metrics, is expected to have a leading presence globally as a diversified technology and service leader to drive both short- and long-term growth opportunities in existing and new markets.
Further, it is expected that the combined company will be able to achieve material cost synergies to support near-term profitability and enhance its margin profile as its revenue profile continues to grow.
In the press release, which can be found on the Volatus website, the company outlines the benefits to both companies’ shareholders, among other details of the merger:
- Transaction Summary
- Board of Directors’ Recommendations
- Further Information
- Debenture Offering & Loan
- Board Changes
- Advisors
Ian McDougall, Chair of Volatus board of directors, commented; “We are thrilled to announce this transformative merger with Drone Delivery Canada. Merging with Drone Delivery Canada will enhance our ability to offer cutting edge technology and services to our clients and help position the combined company as a global leader.
“Volatus sees a tremendous opportunity to commercialize Drone Delivery Canada’s advanced technologies, through our network of partners, Fortune 500, international mining, oil and gas, and utilities clients, further positioning the combined company as a global leader in drone technologies and services.”
Steve Magirias, Chief Executive Officer of Drone Delivery Canada, commented; “Drone Delivery Canada has been searching for the right partner to join us on our growth journey and we are confident that Volatus is a great fit, from a management vision point of view, industry know-how, and experience.
“We were initially attracted to Volatus’ strong reputation in the industry, admirable fiscal management through a challenging capital markets environment, and vision towards generating diversified lines of revenue.”
Glen Lynch, Chief Executive Officer, President and Director of Volatus, commented; “We believe that the strategic impact will be significant right out of the gate, and allow us to drive innovative technology advancements and offer our clients industry leading technology and service.”
Find more details about the Merger of Equals on the Volatus website >>
