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Drone Co. Expands Training as Global Demand for Drone Solutions Rises

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Volatus Aerospace Corp. has acquired two U.K. based drone companies to develop its training program. Read on to see why analysts like this company's stock.

Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB) announced in a recent press release from January 9, 2024, that it had acquired Aerial Motion Pictures Ltd. and Open Sky Consulting International Ltd., two British companies that Volatus anticipates will strengthen its drone training program. Volatus has become an international provider of drone intelligence infrastructure, commercial drone applications, and drone training.

The companies currently operate under the names UAVHub and The Drone Mentor, respectively, and Volatus hopes that these acquisitions will help standardize the company's international offerings.

Volatus purchased the companies for 150,000, which it paid to shareholders of the companies in 1,575,000 shares of Volatus. Volatus also reports that it took on 28,339 in debt.

Glen Lynch, the CEO of Volatus, commented, "UAVHub and The Drone Mentor has a recognized history of excellence as the highest-rated drone training provider in the U.K., training over 45,000 drone pilots since its beginning. This acquisition will help to continue its expansion on an international scale and provide bundled solutions to our client base, increasing customer stickiness and long-term relationships."

Expanding Application for Drones

Volatus has found a niche in several drone applications, including wildfire control. Allied Market Research reported that the market size for drones in wildfire control is expected to reach US$2.4 billion by 2031, representing a 10.2% increase over about a decade.

Commercial drones have been used recently to assist in wildfire control, providing greater intelligence on possible spread without endangering human personnel. On August 28, 2023, Jessica Heath with the University of California Davis reported that the university's researchers had constructed an innovative approach to anticipating wildfires using drones before satellites detect smoke plumes. Heath stated that the university's research indicates that the use of commercial drones in detection could prove to be a crucial time-saving element and provide intervention before fires grow out of control. 

Growth of 60% in Q3

On December 1, 2023, analyst Rob Goff with Echelon reviewed Volatus Aerospace Corp. as a "Speculative Buy" for investors with a target share price of CA$0.68. Goff cited the company's growth of 60% in Q3 of 2023 and the company's three-year deal with a U.S. utility company worth CA$60 million.

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Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB)

*Share Structure as of 1/10/2024

Volatus Aerospace has a number of catalysts, according to its investor presentation, including contracts to expand its waste management project in the U.S.A. and the start of its oil and gas contract in Ontario. The company reports that it was also approved to begin work in crop spraying and fly beyond line-of-sight in wildfire management. 

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, Director and 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 institutional investors in the form of Palos Management Inc. owns 0.11% of the company with 0.13 million shares.

According to Reuters, there are 122.91 million shares outstanding with 45.43 million free float traded shares, while it has a market cap of CA$13.35 million and trades in the 52-week period between CA$0.11 and CA$0.44.

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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. 
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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