The newly formed Volatus Aerospace Corp. will integrate the strengths and expertise of both companies. The merger aims to leverage Drone Delivery Canada’s advanced cargo solutions and Volatus’ established position in piloted and remotely piloted aircraft systems. The combined entity is anticipated to be cash flow neutral by the fourth quarter of 2024 and aims for profitability by 2025.
“This merger enhances our ability to offer cutting-edge technology and services to our clients,” said Ian McDougall, Chairman of Volatus’ board of directors. Steve Magirias, CEO of Drone Delivery Canada, noted, “We are confident that Volatus is a great fit from a management vision point of view, industry know-how, and experience.”
Strategic Rationale
The merger brings together a robust portfolio of proprietary technologies and established market presence. Drone Delivery Canada’s investment of $40 million into competitive drone cargo solutions will be complemented by Volatus’ market strategies in Advanced Air Mobility. “We believe the strategic impact will be significant right out of the gate,” stated Glen Lynch, CEO of Volatus.
Leadership and Governance
Post-merger, the board will consist of seven directors, with Glen Lynch as CEO and Steve Magirias as COO. This experienced team aims to drive short- and long-term growth opportunities.
Benefits to Shareholders
Shareholders from both companies are expected to benefit from enhanced market reach and financial strength. The merger will provide greater access to new geographies and sectors, along with the potential for significant cost synergies.
The arrangement, including the exchange of shares at a ratio of 1.785 Drone Delivery Canada shares for each Volatus share, is subject to shareholder and regulatory approvals, with special meetings expected in the third quarter of 2024.
Read more:
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- Volatus Aerospace Acquires Synergy Aviation, iRed Remote Sensing
- Volatus Acquires iRed Remote Sensing: Thermographic Survey
Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry. Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
For drone industry consulting or writing, Email Miriam.
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