EnerJex Resources Signs Merger Agreement with AgEagle Aerial Systems

EnerJex Resources, Inc., announced that it has entered into a definitive Merger Agreement with AgEagle Aerial Systems, Inc., a leading commercial agricultural drone company.  AgEagle products are designed to improve centuries-old farming methodologies through the use of GPS technology, high-resolution aerial imagery, computer learning and robotics.

AgEagle’s line of automated flying drones collect valuable information for farmers by flying over large fields of corn, soy beans, wheat and other types of crops, collecting thousands of ultra high resolution pictures using sophisticated near-infrared sensors (cameras).  The images are loaded to the cloud midflight through cellular connectivity and stitched together to form one large, near-infrared aerial picture.  Unlike the human eye, algorithmic-based computer programs are able to determine the current health of the photographed crop by analyzing the amount of near-infrared light reflected from the plants.  Healthy plants reflect more near-infrared light while unhealthy plants absorb the light.  Using this high resolution, near-infrared image, a farmer or an agronomist is able to create a ‘prescription map’ that is then fed into the computers that guide large precision crop sprayers so that chemicals, herbicides, pesticides and nutrients can be applied more precisely in the fields, saving money, increasing the amount of yield per acre, and improving the environmental impact of farming.

“Our goal at EnerJex has been to maximize stockholder value and we believe AgEagle, with its strong leadership team, is well-positioned to capitalize on the fast-growing agriculture drone market,” said Louis Schott, CEO of EnerJex.  “While AgEagle is focused on the agriculture market, we believe there is opportunity for drones in the oil and gas industry.”

AgEagle’s board of directors includes company founder and CEO Bret Chilcott, a representative from stakeholder Raven Industries, and Grant Begley, formerly the senior advisor to the Undersecretary of Defense for drones and corporate leader to Lockheed Martin and Raytheon for their respective drone initiatives.

“With 2.1 million farms on 235 million acres of land in the U.S., we believe the precision agriculture sector of the unmanned aerial vehicle market presents robust opportunities for our products,” said Bret Chilcott, AgEagle CEO.   “Now that Amazon and WalMart are heavily investing in the grocery and food services industry we believe an “Amazon Effect” is in store for the agriculture industry, which will require a systematic overhaul of the current processes and a rapid adoption in technology on the farm to increase crop yield and reduce expenses.  When Wal-Mart and Amazon come into a business, margins often get squeezed dramatically.  We believe our product can be cost effectively layered into the workflow of farms in the U.S., and around the world, to increase profitability in an industry under constant margin pressures.  We believe a technology revolution is coming to the farming industry and we further believe that our product demonstrates a clear return on investment for farmers and agronomists alike.”

AgEagle markets its products through a distribution relationship with Raven Industries, a leading precision agriculture company.  Additionally, AgEagle markets its drones directly to farmers and independent agronomists (crop consultants).

More information about AgEagle can be found by visiting its website at www.ageagle.com

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