TORONTO: Drone Delivery Canada Corp. and Volatus Aerospace Corp. have announced a definitive business combination agreement, marking a significant merger of equals. The new entity will operate under the name Volatus Aerospace Corp. and is set to continue trading on the TSX Venture Exchange under the ticker “FLT”, pending regulatory approval.
The merger, unanimously approved by both companies’ boards of directors, is poised to create a powerhouse in the drone technology sector. The combined company will be steered by a seasoned team of industry and business leaders, uniting the strengths and cultures of both organizations.
This strategic alliance aims to kickstart commercialization efforts, promising to bolster shareholder value through a robust, financially stable enterprise with a vision for sustained growth and market dominance. The transaction is anticipated to be finalized in the third quarter of 2024, subject to standard closing conditions.
In terms of share distribution, Volatus Aerospace shareholders are set to receive 1.785 Drone Delivery Canada voting common shares for each Volatus common share they hold. Post-merger, the existing shareholders of both companies will own an equal stake of approximately 50% in the newly formed company, reflecting the current shares issued and outstanding.
Drone Delivery Canada has already invested a substantial $40 million in developing competitive drone cargo solutions, now market-ready. Volatus, with its focus on drone services, training, and equipment sales, is strategically positioned to capitalize on these innovations. As regulations evolve to support drone cargo and remote operations, Volatus plans to advance its commercialization in Advanced Air Mobility, a move that would have otherwise necessitated significant R&D investment.
The merger is expected to establish a global leadership position for the combined company, offering a diverse range of technology and services. It aims to drive growth in both current and new markets while achieving cost synergies to support profitability and an enhanced margin profile as revenues continue to rise.
The management team of the merged company will feature executives from both Volatus Aerospace and Drone Delivery Canada. Glen Lynch, the current CEO, President, and Director of Volatus, will take on the role of CEO, while Steve Magirias, CEO of Drone Delivery Canada, will become the COO.
To facilitate the merger, Drone Delivery Canada is set to issue approximately 224.3 million shares to Volatus shareholders as part of the agreed consideration. This strategic merger heralds a new era of innovation and market leadership in the drone industry.
Steve Magirias, Chief Executive Officer of Drone Delivery Canada, commented, “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 Aerospace board of directors, commented, “We are thrilled to announce this transformative merger with Drone Delivery Canada. 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, commented, “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.”
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