Volatus Aerospace Completes the Acquisition of Sky Scape Industries, LLC.
Rhea-AI Summary
Volatus Aerospace Corp. (OTCQB: VLTTF) has successfully completed the acquisition of Sky Scape Industries, LLC, enhancing its inspection services in the power utilities sector. The transaction, valued at US$585,000 (approximately C$783,900), is expected to generate C$1.4M in revenue for 2023, with C$1M being recurring. Volatus aims to establish itself as a leading service provider across North America, leveraging advanced technologies like LiDAR and thermal sensors for inspections. The acquisition is seen as a strategic move to fulfill growing demand in corridor inspections for oil, gas, and utilities.
Positive
- Anticipated 2023 revenue from Sky Scape acquisition is C$1.4M, with C$1M recurring.
- Acquisition positions Volatus as a leading provider of power utility inspection services across North America.
- More than 10,000 structure inspections contracted for 2023 indicates strong demand.
Negative
- Initial payment includes newly issued common shares, which may result in share dilution.
- Earn-out payment contingent on retaining C$1M of inspections for 2024, raising concerns about future revenue stability.
News Market Reaction – VLTTF
On the day this news was published, VLTTF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Significantly enhancing inspection capabilities in the power utilities sector and expanding into the U.S.
TORONTO, ON / ACCESSWIRE / April 5, 2023 / Volatus Aerospace Corp. (TSXV:VOL)(OTCQB:VLTTF) ("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
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
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.
Forward-Looking Information
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 anticipated benefits of, and estimated revenue to be generated by, the master service agreement; (ii) the business plans and expectations of the Company; and (iii) 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 of management 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 anticipated benefits and revenues of the master service agreement to the Company; the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; meeting the continued listing requirements of the TSXV; and including, but not limited to, those factors set forth in the Company's Annual Information Form under the section "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 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
TSXV: VOL
Contact Details
Rob Walker
+1 204-955-2647
rob.walker@volatusaerospace.com
Company Website
SOURCE: Volatus Aerospace Corp.
View source version on accesswire.com:
https://www.accesswire.com/747773/Volatus-Aerospace-Completes-the-Acquisition-of-Sky-Scape-Industries-LLC
FAQ
What is the significance of the Volatus Aerospace acquisition of Sky Scape Industries?
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