Volatus Aerospace Corp. (TSXV: VOL) (OTCQB: VLTTF) ("Volatus" or "the Company") announced today that it has signed an arm’s length definitive agreement dated Oct 17, 2022 to acquire iRed Limited, a drone services and training company based in Emsworth, England (“iRed”). This acquisition provides a foundation for continued growth in the region and reinforces Volatus’ overall thermographic capabilities.
“We began our expansion in the UK earlier this year with the addition of a seasoned business development executive, Steve Emerson, to build our presence and provide regional leadership. iRed is an established brand with a solid base of resources from which to grow that will enhance our global capabilities in thermography,” said Glen Lynch, CEO of Volatus Aerospace. “Thermography is in high demand in verticals like public safety, forestry, infrastructure, and agriculture. These use cases are only growing as drone capabilities mature and there is higher demand to reduce greenhouse gas emissions through early detection via thermographic imaging.”
Founded in 2001, iRed started as a company specialized in infrared technologies, training, and services. While infrared training and inspection remains a core competency of the company, the advent of drones provided enhanced opportunity for thermography, which ultimately led to the expansion of the company into a variety of drone related services, equipment sales, and a diversified customer base. iRed is targeting year-end revenues of $1M with an EBITDA margin of 7%.
“I’m very proud of what iRed has accomplished over the past 20 years,” said Ray Faulkner, President of iRed. “Joining Volatus will provide us with the resources necessary to take our company to the next level. We look forward to expanding our product offering, growing our service business, and pushing our training programs to the larger global market. Volatus Aerospace shares our commitment to sustainability and reducing our carbon footprint, and we look forward to what we can accomplish together.”
Under the terms of the agreement, Volatus will make an equity investment of £100K in iRed in exchange for newly issued shares (treasury shares) that will represent 51% of all outstanding shares. The investment will be used by iRed for ongoing expansion activities. The transaction is scheduled to close October 31st, subject to board of director, regulatory, and TSX approvals. Volatus will assume over all long-term debt obligations of £221K and the seller is subject to operational and financial metric as defined in the definitive agreement, at one year anniversary, the iRed investor(s) will have an option to sell remaining 49% for up to £125K in exchange of Volatus shares at a valuation of $0.65 per share or 12 months anniversary price, whichever is lower.
This news marks another geographic expansion for Volatus following the announcement of their joint venture in Latin America in June of this year as well as their commitment toward offering green solutions to their clients.
About Volatus Aerospace:
Volatus Aerospace Corp. is a leading provider of integrated drone solutions throughout North America and growing into Latin America and globally. Volatus serves civil, public safety, and defense markets with imaging and inspection, security and surveillance, equipment sales and support, training, as well as R&D, design, and manufacturing. Through our subsidiary, Volatus Aviation, we are introducing green and innovative drone solutions to supplement and replace traditional aircraft and helicopters for long-linear inspections such as pipeline, energy, rail, and cargo services. Volatus is committed to carbon neutrality; the fostering of a safe, equitable and inclusive workplace; and responsible governance.
This news release contains statements that constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the business plans and expectations of the Company; and (ii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by 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. Any and all forward-looking information contained in this news 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 concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company’s current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; and meeting the continued listing requirements of the TSXV. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as 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 can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Source: Volatus Aerospace Corp.
View source version on newsdirect.com: https://newsdirect.com/news/volatus-aerospace-expands-into-uk-with-the-acquisition-of-ired-r-remote-sensing-a-leading-thermographic-survey-company-218473120