Drone Company Makes CA$1.6 Million Sale

Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB) announced in a recent press release that it has made a delivery of surveillance drones worth CA$1.6 million to a defense contractor. This news is an extension of Volatus' history supplying the civil safety and defense market.

Volatus has provided drones to the market in North America and Latin America for the purposes of defense and pipeline surveillance. The company is also focused on the development of carbon-neutral drone technologies.

Rob Walker, the COO of Volatus, commented, "Volatus Aerospace plays an important role in providing equipment, training, and turnkey services for clients involved in search and rescue operations, public safety, and defense. The importance of a surveillance drone is to provide situational awareness as an eye in the sky."

Markets Size Expected To Grow by 13.9%

Drones have also increasingly become a part of the defense industry. McAlinden Research recently reported that the U.S. armed forces are increasingly considering the development of small commercial combat drones, which have been widely effective in the conflict in Ukraine.

According to McAlinden, the cost-effectiveness of small drones is a major factor in their widespread adoption.

Grand View Research reports that the market size for commercial drones was approximately US$19.89 last year and is expected to grow by 13.9% by 2030. It reports that major drivers of the market include the adoption of new technology, such as microcontrollers and artificial intelligence, which are major driver of the market. Additionally, the report stated that after the pandemic, contact-limiting technology has become a major priority for some consumers.

Potential 241% Return

Volatus Aerospace Corp. was reviewed by Echelon Capital Markets, which rated the company as a "Speculative Buy" and named a target price of CA$0.75, representing a potential 241% return on investment. The report cited the company's new contract, which it expects to bring in CA$4 million in revenue, and the company's involvement in the oil and gas industry as potential drivers of the company's stock value.

Catalysts for Volatus include the company's anticipated acquisition of Skyscape, an adjacent company, and its goal to expand within the American oil and gas pipeline market.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 63.04% of the company. According to Reuters, Chairman Ian Alexander McDougall owns 31.75% of the company with 39.02 million shares, and President and CEO Glen Lynch owns 31.29% of the company with 38.46 million shares.

Reuters reports that institutions own approximately 0.49% of the company in the form of Palos Management with 0.60 million shares.

According to Reuters, there are 122.91 million shares outstanding, with 45.43 million free float traded shares, while the company has a market cap of CA$14.81 million.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Volatus Aerospace Corp.
2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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