DDC, Volatus Aerospace announce merger for drone delivery services

Subject to customary closing conditions, the merger is expected to close in the third quarter of 2024.

DDC, Volatus Aerospace announce merger for drone delivery services
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Drone Delivery Canada (DDC) and Volatus Aerospace a leader in the operation of piloted and remotely piloted aircraft systems (drones) announced that they have entered into a business combination agreement to combine the companies in a merger of equals transaction.

The combined company to continue under the name Volatus Aerospace Corp. and, subject to approval of the TSX Venture Exchange, continue trading under the ticker FLT, according to the press release from DDC.

Under the Merger the combined company will be led by a board of directors and management team of experienced drone technology industry and business leaders. By joining forces, Volatus and DDC plan to immediately begin commercialisation efforts, which is intended to enhance shareholder value by forging an 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.

Pursuant to the merger, Volatus shareholders will receive 1.785 DDC voting common shares for each Volatus common share held. Upon closing of the merger, existing shareholders of Volatus and DDC will each own approximately 50% of the combined company (based on the current issued and outstanding shares of each of the companies), says the release.

Steve Magirias, Chief Executive Officer, DDC says: “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.”

Ian McDougall, Chair of Volatus board of directors adds: “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.”

Glen Lynch, Chief Executive Officer, President and Director of Volatus says: “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.”

To date, DDC 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, the release added.

Following the closing of the merger, the board of directors of the combined company will consist of seven directors, comprised of three directors from Volatus including Ian McDougall who will act as the Chair of the combined company, two independent directors from DDC, and two independent directors to be mutually agreed upon at a future date. Management of the combined company will include executives from both Volatus and DDC, with Volatus’ current CEO, President and Director, Glen Lynch, assuming the role as CEO of the combined company, and DDC’s current CEO, Steve Magirias, becoming the COO of the combined company.

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