Volatus Aerospace makes strategic investments in Delta Drone to consolidate the global presence of drones

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Toronto, Ontario –News Direct– Volatus Aerospace Corp.

(TSXV: VOL) ​​(OTCQB: VLTTF) – Volatus Aerospace announced the signing of a definitive agreement on March 3rd, 2022, to make a strategic investment in Delta Drone SA, a company based in Lyon, France, listed on the Euronext Growth Paris stock exchange. The maximum investment value will be C $ 807,679 (€ 576,913), which represents a 20% equity position in Delta Drone SA, with an option to increase the holding to 45% within 30 days of the closing date with an investment amount no more than C $ 1,009,599 (€ 721,142). The total investment will not exceed CAD 1.85 million (EUR 1.30 million) and Volatus plans to finance it from its existing cash reserves.

Delta Drone is a fast-growing robotics and drone company with operations in France, Belgium, Australia, South Africa and Ghana and an annual unaudited turnover in 2021 of approximately CAD 23 million (€ 16 million). Established in 2011, commercial activities include the design, manufacture and sale of specialized drone and robotics equipment, droning of industrial and event security services, training and commercial drone services with particular experience in the mining and agricultural sectors.

The agreement calls for Glen Lynch, CEO of Volatus Aerospace, to become Executive President of Delta Drone. Christian Viguié, currently President and CEO of Delta Drone, will assist Glen and continue to play a role in managing the alliance.

Under the terms of the agreement, Volatus will support Delta Drone in executing an aggressive business development strategy to better leverage the company’s key technologies and capabilities. The following initiatives have already been defined:

  1. Move from a technology-centric organization to a sales-centric organization

  2. Pursue a cost rationalization program to improve efficiency

  3. Discontinue any further use of Ornan’s current dilution funding program

  4. Create joint sales teams with Volatus to accelerate growth in Europe and expand Delta Drone offerings in North America

  5. Pursue development in Africa and the southern hemisphere (Australia and South Africa)

  6. Create a new relationship of trust with all shareholders

“Leveraging Delta Drone operations in Europe, Australia and Africa with Volatus Aerospace operations in Canada, the United States and Latin America will create technical and commercial opportunities on five continents,” said Glen Lynch, CEO of Volatus Aerospace. “This investment provides joint access to technologies and expertise that broaden Delta Drone and Volatus Aerospace’s product and service portfolios and create a synergistic approach to serve the key interests of customers around the world.”

“Delta Drone, Delta Drone International and Volatus Aerospace are highly complementary and this investment pushes us towards the creation of a truly global player, capable of meeting the needs of a clientele of large customers around the world,” said Christian Viguié. Delta Drone President and CEO. “With technology solutions and associated services ready to deploy, we will be able to focus on deeper commercialization and accelerate our growth.”

Volatus Aerospace makes strategic investments in Delta Drone to consolidate the global presence of drones

Volatus Aerospace makes strategic investments in Delta Drone to consolidate the global presence of drones

The operation will involve the issue of 824,162,071 Delta Drone treasury shares which, once issued, will represent 20% of the total outstanding shares. Shares issued will be subject to any share adjustments made by Delta Drone prior to Closing. The consideration will be in cash with the subscription price per share determined by the Parties, based on the average daily price weighted by the volume of the Delta Drone shares in the ten (10) trading days prior to the Closing Date minus a discount of 35%, or € 0.0007 whichever is less. The investment amount to acquire 20% will not exceed C $ 807,679 (€ 576,913). The closing of the operation is scheduled for March 31stst, 2022. In addition to the purchase of the aforementioned shares, optional warrants will be issued to Volatus which will allow Volatus to increase its equity position in Delta Drone to 45% of its outstanding shares. The share subscription price if the Warrants are exercised in Volatus’ sole discretion will be € 0.0007 or the daily volume weighted average price of the Delta Drone shares over a period of ten (10) trading days prior to the Trading Date. Closing minus a 35% discount, whichever is less. The increase of the investment not exceeding C $ 1,009,599 (€ 721,142), can be made by 30 Aprilth, 2022. Volatus is also issued with anti-dilutive warrants that will be activated and exercised when Volatus’s stake falls below the 45% threshold. Anti-dilutive warrants are priced similar to that of optional warrants.

This transaction is expected to close on March 31stst2022 or other agreed date, subject to due diligence, the agreed business plan, the execution of employment contracts for the Delta Drone management team, any applicable waivers and any applicable regulatory approval by the TSX-V, Approval of the MFA and foreign investors by the French Ministry of Economy.

About Aerospace Flew:

Volatus Aerospace Corp. is a leading provider of integrated drone solutions in Canada, the United States and Latin America. Operating an extensive pilot network, Volatus serves the commercial and defense markets with imaging and inspection, security and surveillance, equipment sales and support, training and design, manufacturing and research and development. Through its subsidiary Volatus Aviation, Volatus carries out aircraft management, charter sales and cargo services using piloted, remotely piloted and autonomous aircraft.

Neither the TSX Venture Exchange nor its regulatory service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains statements that constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the Company’s current plans, intentions, beliefs and expectations with respect to future business and operational performance. Often, but not always, forward-looking information can be identified by the use of words such as “plan”, “forecast”, “is expected”, “budget”, “planned”, “estimate”, “forecast”, “intend” , “Anticipates” or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future or indicating that certain actions, events or results “could”, “could”, “would be”, “could “or” will “(or other variations of the foregoing) to be taken, to occur, to be achieved or to come true. Forward-looking information includes information regarding (i) the Company’s business plans and expectations; and (ii) expectations for other economic, commercial and / or competitive factors. Forward-looking information is based on currently available competitive, financial and economic data and operational plans, strategies or beliefs as of the date of this press release, but involves risks, uncertainties, assumptions and other known and unknown factors that may cause actual results, performance or results of the Company differ materially from any future results, performance or results expressed or implied in the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third party industry analysts and other third party sources, and are based on management’s current expectations or beliefs. All forward-looking information contained in this press release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts, but instead reflects expectations, estimates or projections relating to future results or events based on management’s opinions, assumptions and estimates deemed reasonable at the date such statements are made. Forward-looking information reflects the Company’s current beliefs and is based on the information currently available to it and on assumptions it deems not unreasonable in all circumstances. In some cases, material factors or assumptions are discussed in this press release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the impact of the COVID-19 pandemic on Society; meet the TSXV’s continuous quotation requirements; and anticipated and unexpected costs and other factors referred to in this press release and in the Circular, including, but not limited to, those indicated in the Circular under the heading “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors that cause actions, events or results other than those anticipated, estimated or anticipated. The forward-looking information contained in this document is made as of the date of this press release and, in addition to what is required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There is no guarantee that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those projected in such statements. Consequently, readers should not place undue reliance on forward-looking information.

Source: Volatus Aerospace Corp.

TSXV: VOL

About Delta Drone:

Delta Drone Group is a recognized international player in the civilian drone sector for professional use. It develops a range of professional solutions based on drone technology and all associated services that form a complete value chain. Delta Drone shares are listed on the Euronext Growth Paris market – ISIN code: FR0011522168 Also listed on BSA Y’s Euronext Growth – ISIN code: FR 0013400991 www.deltadrone.com

Contact details

Volatus Aerospace Corp.

Rob Walker

+1 514-447-7986

rob.walker@volatusaerospace.com

company website

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