{"id":28790,"date":"2024-05-27T15:38:29","date_gmt":"2024-05-27T15:38:29","guid":{"rendered":"https:\/\/saj.pachecostudios.com?p=28790"},"modified":"2024-05-27T15:39:49","modified_gmt":"2024-05-27T15:39:49","slug":"drone-delivery-canada-and-volatus-aerospace-corp-announce-merger","status":"publish","type":"post","link":"https:\/\/stateaviationjournal.com\/index.php\/international-news\/drone-delivery-canada-and-volatus-aerospace-corp-announce-merger\/%20","title":{"rendered":"Drone Delivery Canada and Volatus Aerospace Corp. Announce Merger"},"content":{"rendered":"\n

Drone Delivery Canada Corp. and Volatus Aerospace Corp. have\nannounced that they have entered into a business combination agreement to\ncombine the companies in a merger of equals transaction, with the combined\ncompany to continue under the name “Volatus Aerospace Corp.” <\/p>\n\n\n\n

Under the Merger, which the boards of directors of both\ncompanies have approved, the combined company will be led by a board of\ndirectors and management team of experienced drone technology industry and\nbusiness leaders, bringing together the cultures, strengths, and capabilities\nof both companies. By joining forces, Volatus and Drone Delivery Canada plan to\nimmediately begin commercialization efforts, which is intended to enhance\nshareholder value by forging a robust, financially sound enterprise focused on\nimmediate and long-term revenue with a clear path to sustainable growth and\nmarket leadership. Subject to customary closing conditions, the Merger is\nexpected to close in the third quarter of 2024.<\/p>\n\n\n\n

Pursuant to the Merger, Volatus shareholders will receive\n1.785 (the “Exchange Ratio”) Drone Delivery Canada voting common\nshares (each, a “Drone Delivery Canada Share”) for each Volatus\ncommon share (a “Volatus Share”) held (the\n“Consideration”). Upon closing of the Merger, existing shareholders\nof Volatus and Drone Delivery Canada will each own approximately 50% of the\ncombined company (based on the current issued and outstanding shares of each of\nthe companies).<\/p>\n\n\n\n

Strategic Rationale<\/strong><\/p>\n\n\n\n

To date, Drone Delivery Canada has invested $40 Million into\nbuilding strong, competitive drone cargo solutions that are now ready to go to\nmarket. By focusing on drone services, training, and equipment sales, Volatus\nis well-positioned to leverage these technologies and bring them to market. As\nregulations begin to enable the commercialization of drone cargo and remote\ndrone operations, Volatus has been planning to commercialize its efforts in\nAdvanced Air Mobility, adding to its go-to-market strategy. Without technology\nsuch as Drone Delivery Canada’s remote operations center; Flyte management\nsoftware; DroneSpot infrastructure; and cargo-focused, commercialized aircraft,\nthe path to competitively enter the Advanced Air Mobility market would require\nsignificant research and development (“R&D”) investment for any\ndrone-based services company. The combined company, with its shared decades of\ntechnology and aviation experience as well as strong financial and operating\nmetrics, is expected to have a leading presence globally as a diversified\ntechnology and service leader to drive both short- and long-term growth\nopportunities in existing and new markets. Further, it is expected that the\ncombined company will be able to achieve material cost synergies to support\nnear-term profitability and enhance its margin profile as its revenue profile\ncontinues to grow.<\/p>\n\n\n\n

Steve Magirias, Chief Executive Officer of Drone Delivery\nCanada, commented, “Drone Delivery Canada has been searching for the right\npartner to join us on our growth journey and we are confident that Volatus is a\ngreat fit, from a management vision point of view, industry know-how, and\nexperience. We were initially attracted to Volatus’ strong reputation in the\nindustry, admirable fiscal management through a challenging capital markets\nenvironment, and vision towards generating diversified lines of revenue.”<\/p>\n\n\n\n

Ian McDougall, Chair of Volatus board of directors,\ncommented, “We are thrilled to announce this transformative merger with\nDrone Delivery Canada. Merging with Drone Delivery Canada will enhance our\nability to offer cutting edge technology and services to our clients and help\nposition the combined company as a global leader. Volatus sees a tremendous\nopportunity to commercialize Drone Delivery Canada’s advanced technologies,\nthrough our network of partners, Fortune 500, international mining, oil and\ngas, and utilities clients, further positioning the combined company as a\nglobal leader in drone technologies and services.”<\/p>\n\n\n\n

Glen Lynch, Chief Executive Officer, President and Director\nof Volatus, commented, “We believe that the strategic impact will be\nsignificant right out of the gate, and allow us to drive innovative technology\nadvancements and offer our clients industry leading technology and\nservice.”<\/p>\n\n\n\n

Leadership and Governance<\/strong><\/p>\n\n\n\n

Following the closing of the Merger, the board of directors\nof the combined company will consist of seven (7) directors, comprised of three\n(3) directors from Volatus including Ian McDougall who will act as the Chair of\nthe combined company, two (2) independent directors from Drone Delivery Canada,\nand two (2) independent directors to be mutually agreed upon at a future date.\nManagement of the combined company will include executives from both Volatus\nand Drone Delivery Canada, with Volatus’ current Chief Executive Officer,\nPresident and Director, Glen Lynch, assuming the role as Chief Executive\nOfficer of the combined company, and Drone Delivery Canada’s current Chief\nExecutive Officer, Steve Magirias, becoming the Chief Operating Officer of the\ncombined company.<\/p>\n\n\n\n

Benefits to Drone Delivery Canada Shareholders<\/strong><\/p>\n\n\n\n