Volatus Aerospace Expands Product Distribution to US Market with Acquisition of Empire Drone Company

Volatus Aerospace Corp. announced today that it has signed an arm’s length definitive agreement to acquire Syracuse-based Empire Drone Company LLC., one of North America’s fastest-growing distributors and integrators for unmanned aerial systems.

With Fortune Business Insights projecting the commercial drone market to grow to $47.38 billion by 2029 at a CAGR of 28.58%, the addition of Empire Drone in the USA positions Volatus to capitalize on this opportunity by adding to its growing global presence in key markets for green drone technologies, which includes Volatus Aerospace LATAM in South America, Omniview Tech in Canada, and iRed Remote Sensing in the UK.

“Volatus is already a major distributor and developer of civil and defence drone solutions in Canada,” said Glen Lynch, CEO of Volatus Aerospace. “The addition of Empire Drone solidifies our footprint in America and positions us for improved margins and accelerated growth in America with a US depot and US-based support.”

“Joining Volatus provides Empire with the resources needed to accelerate our growth,” said Sean Falconer, CEO and founder of Empire. “We’ll become a more important partner for our existing OEM suppliers and increase our offering with Volatus technologies such as the Aerieport remote nesting station, Hydra Crawler, and other Volatus defence and public safety products. It’s long been my goal to be a dominant player in the United States and this deal will give me the resources needed to get there.”

Empire Drone is expected to generate revenue of C$2.5M in 2022 with a 6% EBITDA margin. Under the terms of the agreement, Volatus will purchase 100% of the company for a cash consideration of US$300,000, equity of US$350,000 with a minimum floor price of $0.65, and earn out of US$350,000 paid in equity after one year anniversary based on the 30-day volume weighted average price (VWAP) with a minimum floor price of $0.65 per share and assume the long-term debt of US$225,000.

This announcement marks another step in a series of interrelated commercial milestones intended to drive and scale the commercialization of drone technologies including:

  • Announcement of Volatus Aerospace LATAM, a joint venture with EOLO Drones S.A.C. (“EOLO”) to expand Volatus’ commercial operations in Latin America.
  • Introduction of a full-service financing program for enterprise and industrial drone equipment to help drone service providers, public safety agencies and industrial clients leverage the rapid evolution of related technologies by offering rental, usage contracts, and customized funding arrangements for the sale of its Drone Solutions targeted at transactions valued from $25,000 to over $2,000,000.
  • Acquisition of iRed Remote Sensing based in Emsworth, England to provide a foundation for continued growth in the UK.

The acquisition of Empire Drone is scheduled to close on December 31st conditional on satisfactory completion of due diligence, approval of the respective Board of Directors, and regulatory approval by the Toronto Stock Exchange.

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