Source: Drone Delivery Canada.
  • Drone Delivery Canada (TSXV:FLT) and Volatus Aerospace (TSXV:VOL) have agreed to a merger of equals, creating a drone technology and services company with an established global market share
  • The combined company intends to bring Drone Delivery Canada’s drone cargo solutions to a global market leveraging Volatus’ presence across Canada, the United States, the United Kingdom and Latin America
  • Volatus stock opened with a gain of 37.93 per cent, trading at C$0.20 per share, while shares of Drone Delivery Canada were unchanged after the news

Drone Delivery Canada (TSXV:FLT) and Volatus Aerospace (TSXV:VOL) have agreed to a merger of equals, creating a drone technology and services company with an established global market share.

Volatus shareholders will receive 1.785 FLT voting common shares for each VOL common share held. Upon closing, existing shareholders of Volatus and Drone Delivery Canada will each own 50 per cent of the combined company.

Continuing under the name of Volatus Aerospace, and subject to approval of the TSXV, the new company intends to bring Drone Delivery Canada’s drone cargo solutions to a global market leveraging Volatus’ wide-ranging reach across services, training and equipment sales.

In this way, the company plans to capitalize on emerging regulations enabling the commercialization of drone cargo and remote drone operations, and get a step ahead of the competition in the advanced air mobility market, saving “significant research and development investment,” according to Tuesday’s news release.

Investors can gain exposure to decades of technology and aviation experience, as well as strong financial and operating metrics, with management expecting the merger to drive cost synergies and short- and long-term growth opportunities towards cash flow neutrality by Q4 2024.

Glen Lynch, Volatus’ president and chief executive officer, will assume the role of CEO of the merged company, while Ian McDougall, Volatus Aerospace’s chairman of the board, will become chairman, and Steve Magirias, Drone Delivery Canada’s current CEO, will become chief operating officer.

The merger is expected to close in Q3 2024, barring any superior proposals, which each party would have five business days to match.

Leadership insights

“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,” Magirias said in a statement. “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.”

“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,” McDougall said in a statement. “Volatus sees a tremendous opportunity to commercialize Drone Delivery Canada’s advanced technologies through our network of partners and Fortune 500, international mining, oil and gas, and utilities clients, further positioning the combined company as a global leader in drone technologies and services.”

“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,” Lynch said.

About Volatus Aerospace and Drone Delivery Canada

Volatus provides integrated drone solutions throughout North America to civil, public safety and defense markets, with a growing presence in Latin America and the United Kingdom.

Volatus stock (TSXV:VOL) opened with a gain of 37.93 per cent trading at C$0.20 per share. The stock has given back 33.33 per cent year-over-year and 60 per cent since 2019.

Drone Delivery Canada offers a drone-based logistics software platform with an emphasis on cargo delivery.

Drone Delivery Canada stock (TSXV:FLT) is unchanged, trading at C$0.20 per share as of 9:46 am ET. The stock has given back 50 per cent year-over-year and 86.82 per cent since 2019.

Join the discussion: Find out what everybody’s saying about these drone technology stocks on the Volatus Aerospace Corp. and Drone Delivery Canada Corp. Bullboards, and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.

(Top photo is sourced from Drone Delivery Canada.)


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