Volatus Aerospace Corp. ("Volatus" or "the Company") announced today that it has completed the acquisition of Sky Scape Industries, LLC., of Woodbine New Jersey. The transaction was first announced in a press release on March 2, 2023. Expected 2023 revenue from existing inspection projects is C$1.4M of which approximately C$1M is recurring with margins, net income, and expenses within historical norms for projects of this nature.
Volatus has been providing inspection services to power utilities in Canada for the past couple of years. The addition of Sky Scape Industries positions Volatus as a leading provider of power utilities across North America. Services include the use of LiDAR, photogrammetry, thermal, and corona sensors to inspect sub-stations, structures and their related assets; line leading/stringing; and right-of-way inspections to monitor vegetation encroachment and other threats. Intelligence services include data services to deliver actionable reports.
"This was a strategic move for Volatus and in line with our objective to become a dominant provider for corridor inspections in oil and gas, power utilities, and railway," said Glen Lynch, CEO of Volatus Aerospace Corp. "With more than 10,000 structure inspections already contracted and underway for 2023, power utilities have become a key industrial sector for Volatus, second only to our pipeline surveillance services for oil and gas."
Under the terms of the definitive agreement, as amended following the completion of due diligence, the total purchase price, subject to an earn-out provision, is US$585,000 (C$783,900 @1.34) to be paid as follows: An initial payment of approximately US$275,000 (C$368,500) in the form of newly issued common shares of Volatus Aerospace Corp. based on the share price at closing or the prior 30-day VWAP, whichever is higher. This converts to 969,737 common shares at the closing price of C$0.38. The earn-out payment of US$310,000 (approximately C$416,905 at current exchange), will be payable twelve (12) months after closing in the form of additional Volatus shares issued on the share price of C$0.65 or the prior 30-day VWAP, whichever is higher. This payment is conditional on Sky Scape retaining approximately C$1M of inspections already contracted for 2024.
About 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.