Things are moving fast at Volatus Aerospace (TSXV:FLT), the Canadian drone specialist for civil and military applications: Following two orders for drones and drone training from a NATO country, the company has now secured growth financing. The company announced overnight that it intends to raise up to CAD 10 million through a non-brokered “LIFE Offering.” This means that the new shares are not subject to any lock-up period. The financing will support expansion in the area of tactical ISR and logistics services and prepare for growth investments. The capital will thus flow into precisely those areas in which Volatus Aerospace has recently demonstrated its ability to win orders: military reconnaissance and logistics.
This article is disseminated in partnership with Apaton Finance GmbH. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Growth financing meets growth markets
According to experts at Mordor Intelligence, the market for military logistics will grow from USD 29.27 billion to USD 37.12 billion between 2024 and 2029 – an annual increase of 4.9%. Added to this is the potential in the field of military reconnaissance and communications. According to analysts, these markets are also worth billions and are growing significantly. Fortune Business Insights estimates the market volume in the military communications sector at USD 60.4 billion in 2032 and expects annual growth of 7.2% from 2024 onwards. Business Research Insights sees the market for military reconnaissance at USD 255.88 billion with an annual growth rate of 3.9% until 2033. Even though these market forecasts can only provide an initial indication of how great the potential is in the business segment occupied by Volatus Aerospace (TSXV:FLT), the financing round announced now appears logical in order to quickly secure further market share.
Volatus Aerospace with military and civilian potential
With fresh capital, the drone specialists can continue their growth course even faster and convert the interest of potential customers into orders even more easily. The market is also likely to view the fact that financing can be announced at the current valuation level as positive. Volatus Aerospace is active in two exciting growth areas. In addition to the increased demand for military solutions in the fields of logistics and reconnaissance, the company also offers solutions for monitoring infrastructure such as bridges, pipelines, dams, and roads. Using modern technology, construction defects can be detected in good time and ultimately rectified – there is a backlog of infrastructure repairs worldwide. A report by the G20 estimates that investments of USD 94 trillion in infrastructure will be necessary every year worldwide until 2040.
Capital measure on fair terms
As part of the capital measure announced today, Volatus intends to issue up to 19.23 million units at CAD 0.52 each, raising up to CAD 10 million. Each unit consists of one share and half a warrant. Two half warrants therefore entitle the holder to purchase one additional share at a price of CAD 0.76 within 36 months. The capital measure is therefore being carried out at a fair price. Just yesterday, analysts at Ventum Capital Markets raised their price target for Volatus Aerospace to CAD 0.50.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a “Transaction”). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.