Draganfly Inc. announced that it has entered into a letter of intent with Global UAV Technologies Inc. to acquire two-wholly owned subsidiaries, being Pioneer Aerial Surveys Ltd. and High Eye Aerial Imaging Inc…
The Proposed Transaction, if completed, will constitute a fundamental change of Global UAV within the meaning of the policies of the Canadian Securities Exchange Inc. (the “CSE“) and will be subject to approval by the shareholders of Global UAV.
Transaction Highlights
- Continues to establish Draganfly as a leading, diversified drone organization: The Global UAV Subsidiaries have total revenues in excess of CAD$4.0 million since 2017, with Pioneer Aerial Surveys having gross revenue of $1,936,501 in the financial year ended 2019.
- Strategically Positioned to Leverage Draganfly’s Brand: The acquisition of the Global UAV Subsidiaries will be a complementary business to Draganfly and expand Draganfly’s total addressable market and enhance its position as a leader in the UAV and UVS industry.
- Established History of Providing Drone Services: The Global UAV Subsidiaries have been operating since 2017.
- Expansion of Services Offered: Pioneer Aerial Surveys is a global leader in providing UAV based geophysical surveys to the mining and industrial sectors with a focus on providing magnetic data to clients around the globe. High Eye Aerial Imaging provides LiDAR services.
Cameron Chell, Chairman and CEO, stated,
“Pioneer Aerial and High Eye Aerial are premier aerial service providers in the mining industry. With the increase in global mining activity and the anticipated regulatory clarity of being able to deploy Beyond Visual Line Of Sight use of drones in the mining industry, we see an exponential growth opportunity for Draganfly to become the #1 or #2 global provider of aerial and data services in the mining industry”.
Material Terms of the Agreement
- On closing of the transaction, the Company will have paid to Global UAV CAD$350,000, which will consist of the following: (i) a cash payment of CAD$125,000, and (ii) CAD$225,000 in common shares of Draganfly based on a thirty (30) day volume weighted average price per common share of Draganfly following the execution of the LOI.
- Draganfly will grant Global UAV a royalty of 7.5% of gross revenue generated from UAV magnetometer and LiDAR systems for a period of eighteen months from Closing and assume $50,000 in liabilities that have been incurred by the Global UAV Subsidiaries.
- Closing is subject to shareholder approval from the shareholders of Global UAV and a number of closing conditions customary for a transaction of this nature, including the filing of required forms with the Canadian Securities Exchange.
Source: Press Release