Drone Delivery Canada Corp. (TSXV: FLT) and Volatus Aerospace Corp. (TSXV: VOL) have announced a transformative merger, creating a worldwide leader in drone technology and services. This 50/50 merger of equals, leading to a combined entity named “Volatus Aerospace Corp.”, is anticipated to shut within the third quarter of 2024, pending regulatory approvals.
The newly formed Volatus Aerospace Corp. will integrate the strengths and expertise of each firms. The merger goals to leverage Drone Delivery Canada’s advanced cargo solutions and Volatus’ established position in piloted and remotely piloted aircraft systems. The combined entity is anticipated to be money flow neutral by the fourth quarter of 2024 and goals for profitability by 2025.
“This merger enhances our ability to supply cutting-edge technology and services to our clients,” said Ian McDougall, Chairman of Volatus’ board of directors. Steve Magirias, CEO of Drone Delivery Canada, noted, “We’re confident that Volatus is an amazing fit from a management vision viewpoint, industry know-how, and experience.”
Strategic Rationale
The merger brings together a strong portfolio of proprietary technologies and established market presence. Drone Delivery Canada’s investment of $40 million into competitive drone cargo solutions can be complemented by Volatus’ market strategies in Advanced Air Mobility. “We imagine the strategic impact can be significant right out of the gate,” stated Glen Lynch, CEO of Volatus.
Leadership and Governance
Post-merger, the board will consist of seven directors, with Glen Lynch as CEO and Steve Magirias as COO. This experienced team goals to drive short- and long-term growth opportunities.
Advantages to Shareholders
Shareholders from each firms are expected to learn from enhanced market reach and financial strength. The merger will provide greater access to recent geographies and sectors, together with the potential for significant cost synergies.
The arrangement, including the exchange of shares at a ratio of 1.785 Drone Delivery Canada shares for every Volatus share, is subject to shareholder and regulatory approvals, with special meetings expected within the third quarter of 2024.
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