Volatus Aerospace Corp. (VOL:TSX - VLTTF:OTCQB) has released two major announcements about the company's activities in Canada: it has been approved to operate crop spraying drones in all provinces of Canada, a country with 62.2 million hectares of farmland, and it has also been approved to provide infrared drone services intended to assist in the suppression of wildfires in Canada.
News
Volatus has been approved to operate crop-spraying drones over 25kg in all provinces of Canada. This special authority allows pilots trained through Volatus to fly in Canada. Drone crop spraying has become increasingly accepted by the international community because of its improved targeting and coverage. However, the dispersal of some chemicals has not yet been approved in Canada; but such restrictions are mostly limited to pesticides.
According to Reno Matthews, the director of regulatory compliance at Volatus, "The current advanced drone regulations in Canada restrict the flight of a remotely piloted aircraft weighing over 25kg within the national airspace. This approval permits Volatus Aerospace to operate a heavy crop-spraying drone, which has a maximum takeoff weight of 101kg. This unlocks our ability to offer compliant drone crop-spraying services across Canada for our precision agriculture clients."
According to FACT.MR, the market for drone-spraying services are expected to reach a valuation of US$213.7 million this year and is expected to grow by 24.7% this year. Canada is an especially important market, as it contains more than 189,000 farms that cover 62.2 million hectares.
Volatus has also passed Alberta Wildfire Services' Hinton GRID Testing evaluation process, and is now a qualified vendor providing infrared imaging services from drones for wildlife suppression. According to Walter Weselowski, the team lead for special flight operations of Volatus Aerospace, "Although many drone pilots are wanting to help with wildfire suppression, safely flying a drone in complex wildfire environments while collecting accurate and reliable hotspot data is a skill requiring specific knowledge, qualifications, and experience."
Wildfires have become an increasingly large concern in Alberta, which has experienced increased destruction in the latest fire seasons. Volatus was also recently approved to fly beyond the visual line of sight and above 400 feet in support of fire suppression agencies across Canada.
Why Drones?
In recent years, drones have seen a wide range of uses that extend far beyond defense applications. According to US News, several drone stocks have seen an upward trend. Global drone shipments intended for commercial purposes are expected to increase at a compound annual growth rate of 66.8% this year, and increase to a value of US$63.6 billion by 2025.
The Motley Fool predicts that the drone industry could grow at a compound annual rate of 42% in upcoming years. While these outlets may disagree on exact numbers, both predict a dramatic increase in value.
Catalysts
Volatus has become a leader in the drone industry. It has expanded across North America, Latin America, and Europe. It is a vertically integrated business focused on bringing new technology to the commercial market.
Volatus is anticipated the introduction of mining technology in November of 2022, and the introduction of new defense technology in December of 2022. The company expanded aggressively in the US in February of 2023, and expected the commercialization of a nesting station in March of 2023.
Ownership and Share Structure
Streetwise Ownership Overview*
Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB)
Volatus has a market cap of CA$30 million. There are 113,943,079 shares, 24,954,951 warrants, and 5,599,232 options. They trade in the 52 week period between
Ian Alexander McDougall owns 11.91% with 13.57 million shares, Glen Lynch owns 11.42% with 13.02 million shares, Michael W. Herman owns 0.54% with 0.61 million shares, and Luc Masse owns 0.07% with 0.08 million shares.
Volatus Aerospace Corp owns 1.22% with 1.40 million shares, and Palos Management Inc. owns 0.53% with 0.60 million shares. There are no strategic investors.
The company reports that it has CA$6.8 million in the bank as of September 30th of 2022. The company has a monthly burn rate of $500k.
There are no reported sellers, but two sets of warrants are set to expire on December 22 of 2023 with an exercise price of 40.65 and CA$0.75. A third set expires on October 5th of 2024 at CA$0.50.
Volatus works with a number of influencers, including Capital Events Management, Peterson Capital, and BTV. Rob Goff of Echelon Wealth provides news coverage and analysis of the company, while Ed Vranic of Seeking Alpha works with the company as an influencer.
Important Disclosures:
- Volatus Aerospace Corp. are billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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