Mr. James Rogers reports
GLOBAL UAV ANNOUNCES LOI WITH DRAGANFLY TO SELL PIONEER AERIAL AND HIGH EYE AERIAL
Global UAV Technologies Ltd. has entered into a non-binding letter of intent on May 18, 2020, with Draganfly Inc. for the sale of its wholly owned subsidiaries, Pioneer Aerial Surveys Inc. and High Eye Aerial Imaging Inc. The proposed transaction, if completed, will constitute a fundamental change of Global UAV within the meaning of the policies of the Canadian Securities Exchange, and will be subject to, among other things, satisfactory due diligence, the negotiation and execution of a definitive agreement, and approval by the CSE and by the shareholders of Global UAV. Subsequent to the completion of the proposed transaction, the company will be exploring various strategic alternatives with respect to its future business in the UAV sector or otherwise.
Material terms of the agreement
The material terms of the proposed transaction are as follows:
- On the execution of the LOI, Draganfly will pay to Global UAV a refundable deposit of $25,000.
- On the closing of the proposed transaction, Draganfly will have paid to Global UAV aggregate consideration of $350,000, which will consist of the following: (i) a cash payment of $125,000 made pursuant to a private placement for common shares of the company, which shall be completed within four weeks of entering a binding agreement, and (ii) $225,000 in common shares of Draganfly, which shall be issued at a price per share equal to the 30-day volume-weighted average price of the common shares of the company subsequent to the date on which the LOI is executed.
- Draganfly will grant Global UAV a royalty of 7.5 per cent of gross revenue generated from UAV magnetometer and lidar systems for a period of 18 months from closing and assume $50,000 in certain liabilities that have been incurred by the Global UAV subsidiaries.
The company will retain the Procyon 800 E design and intellectual property of Novaerial Robotics Ltd., and will continue to participate in the UAV industry through its shareholding in Draganfly and the royalty included as part of the proposed transaction.
About Global UAV Technologies Ltd.
Global UAV is a diversified, vertically integrated drone technology company within the commercial unmanned aerial vehicle (UAV) sector. Through its wholly owned subsidiaries -- Pioneer Aerial Surveys, High Eye Aerial Imaging, UAV Regulatory Services Inc. and Novaerial Robotics -- Global UAV provides a full spectrum of UAV-based services and products, including drone research and development and manufacturing, flight services, and regulatory compliance. Global UAV will continue its growth through technology development, expanding the business of its current divisions, and through the continued evaluation of potential acquisitions. Global UAV is well positioned for growth as a vertically integrated drone technology company.
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