- Drone company, Global UAV Technologies (CSE:UAV) has signed a letter of intent, agreeing to sell two of its subsidiaries to Draganfly Inc (CSE:DFLY)
- The company plans to sell Pioneer Aerial Surveys and High Eye Aerial Imaging for C$350,000 in cash and common shares
- Draganfly will also pay Global UAV a refundable deposit of $25,000 after executing the letter of intent
- The proposed transaction is subject to various requirements, including CSE and shareholder approval
- Global UAV Technologies (UAV) is down 33.33 per cent and is currently trading for 1 cent per share
Drone company, Global UAV Technologies (CSE:UAV) has signed a letter of intent, agreeing to sell two subsidiaries to Draganfly (CSE:DFLY).
The letter of intent is non-binding but proposes the sale of two wholly owned Global UAV subsidiaries, Pioneer Aerial Surveys and High Eye Aerial Imaging.
After executing the agreement, Draganfly will pay Global UAV a deposit of C$25,000, which is refundable.
If the proposed transaction goes ahead, Draganfly will purchase the subsidiaries for an aggregate amount of $350,000. This will consist of $125,000 cash, and $225,000 in Draganfly’s common shares.
Draganfly will pay the cash amount after completing a private placement for its common shares. This will take place within four weeks of the companies entering a binding agreement.
Draganfly will issue the $225,000 in common shares at a price equal to the 30-day volume weighted average share price.
In addition to the cash and common shares, Draganfly will also provide another incentive for the proposed transaction. The company will grant Global UAV a 7.5 per cent royalty on gross revenue from UAV magnetometer and LiDAR systems.
This royalty will last for the eighteen months following the closing of the transaction. Draganfly will also assume $50,000 in certain liabilities, which Global UAV’s subsidiaries have incurred.
Whilst losing two subsidiaries, Global UAV will retain the Procyon 800 E design, and the IP of Novaerial Robotics. The company will also continue participating in the unmanned aerial vehicle industry, through its royalties and stake in Draganfly.
This transaction is subject to certain requirements, such as satisfactory due diligence, and negotiating and executing a definitive agreement. In addition, the companies must gain the approval of the Canadian Securities Exchange, and Global UAV’s shareholders.
Global UAV Technologies (UAV) is down 33.33 per cent, and is trading for 1 cent per share, as of 11:30am EDT.