Drone Supply Canada and Volatus Aerospace Announce Merger

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Drone Delivery Canada Volatus mergerDrone Supply Canada Corp. (TSXV: FLT) and Volatus Aerospace Corp. (TSXV: VOL) have introduced a transformative merger, creating a world chief in drone expertise and providers. This 50/50 merger of equals, leading to a mixed entity named “Volatus Aerospace Corp.”, is anticipated to shut within the third quarter of 2024, pending regulatory approvals.

The newly fashioned Volatus Aerospace Corp. will combine the strengths and experience of each corporations. The merger goals to leverage Drone Supply Canada’s superior cargo options and Volatus’ established place in piloted and remotely piloted plane programs. The mixed entity is anticipated to be money circulation impartial by the fourth quarter of 2024 and goals for profitability by 2025.

“This merger enhances our capability to supply cutting-edge expertise and providers to our purchasers,” stated Ian McDougall, Chairman of Volatus’ board of administrators. Steve Magirias, CEO of Drone Supply Canada, famous, “We’re assured that Volatus is a superb match from a administration imaginative and prescient standpoint, trade know-how, and expertise.”

Strategic Rationale

The merger brings collectively a strong portfolio of proprietary applied sciences and established market presence. Drone Supply Canada’s funding of $40 million into aggressive drone cargo options shall be complemented by Volatus’ market methods in Superior Air Mobility. “We consider the strategic influence shall be important proper out of the gate,” acknowledged Glen Lynch, CEO of Volatus.

Management and Governance

Submit-merger, the board will encompass seven administrators, with Glen Lynch as CEO and Steve Magirias as COO. This skilled workforce goals to drive short- and long-term progress alternatives.

Advantages to Shareholders

Shareholders from each corporations are anticipated to profit from enhanced market attain and monetary energy. The merger will present larger entry to new geographies and sectors, together with the potential for important value synergies.

The association, together with the change of shares at a ratio of 1.785 Drone Supply Canada shares for every Volatus share, is topic to shareholder and regulatory approvals, with particular conferences anticipated within the third quarter of 2024.

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