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New Partnership Enhances Drone Logistics Management for Offshore Deliveries

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Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB) has announced a collaboration with Mitsubishi Electric US, Inc. to integrate drone-based logistics operations management platform into its services. Read on to find out how this affects the company and the growing drone sector.

Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB) announced a collaboration with Mitsubishi Electric U.S., Inc. to integrate the AnyMile™ drone-based logistics operations management platform into its services.

This strategic partnership aims to enhance Volatus' logistics capabilities, providing end-to-end management for drone delivery operations. A funded trial, set to commence later this year, will focus on delivering logistics to offshore oil rigs. This collaboration is contingent upon the successful merger of Volatus with Drone Delivery Canada (DDC), where DDC's Canary aircraft will be utilized from Volatus' operational control center.

The drone delivery market continues to grow, and, according to the company, Volatus Aerospace's collaboration with Mitsubishi Electric U.S. addresses a critical need for scalable logistics management.

The AnyMile platform offers a comprehensive system to manage deliveries from origin to destination, ensuring efficient and reliable operations. This integration is expected to streamline drone delivery services, making them more accessible and manageable for customers.

The Drone Market

The drone industry is projected to grow, with delivery and logistics playing a major role moving forward.

As cited in a recent report from Markets and Markets, "The drone logistics and transportation market is projected to grow from US$0.9 billion in 2023 to US$16.1 billion by 2030, growing at a CAGR of 50.1 % from 2023 to 2030."

Echelon Capital Markets analyst Rob Goff  gave Volatus a Speculative Buy rating and a target price of CA$0.68.

The report continued, "The drone logistics transportation sector is experiencing robust growth, fueled by several compelling market drivers. One key driver is the increasing demand for faster and more efficient delivery services. Drones offer the potential to revolutionize last-mile delivery, reducing transit times significantly and providing a cost-effective alternative to traditional transportation methods."

Precedence Research echoes these claims, writing in a recent report, "With [the] rapid development of technology, the drones are now extensively being used in managing the logistics and transporting them to their destination. A large number of companies across the globe have started using drones to manage their supply chain management systems. Drones are also used in mining operations, land survey operations, agriculture land and crop inspections, and many more. All these attributes are expected to drive the growth of the drone logistics and transportation market."

Company Catalysts

The collaboration between Volatus Aerospace and Mitsubishi Electric U.S. represents a significant catalyst for the company.

According to Glen Lynch, CEO of Volatus Aerospace, "Volatus sees this collaboration as an opportunity to enhance our customer logistics experience, enabling them to scale seamlessly." The AnyMile platform's intuitive design is set to make drone deliveries as simple as coordinating with major package delivery carriers, thus driving customer adoption and satisfaction.

Zafer Sahinoglu, VP of Innovation for Mitsubishi Electric US, highlighted the reliability and end-to-end management capabilities of the AnyMile platform.

Marketbeat currently lists Volatus as a "Buy." The site also lists the average twelve-month stock price forecast for Volatus Aerospace is CA$0.75.

He stated, "The AnyMile platform provides an end-to-end, trustworthy system to manage the cargo delivery operations of Volatus. From start to finish, we enable customers to track and monitor their shipments reliably, no matter how complex." This robust logistics management solution is anticipated to bring innovation and problem-solving to Volatus' operations, further strengthening the company's market position and growth prospects.

Volatus CFO Abhinav Singhvi commented, "Volatus Aerospace is set to significantly enhance its logistics capabilities through a strategic partnership with Mitsubishi Electric U.S., providing comprehensive management for drone delivery operations." 

He mentioned that a funded trial, on the books later this year, will aim to deliver logistics to offshore oil rigs using  Drone Delivery Canada's (DDC) Canary aircraft from DDC's control and remote operations center."

Singhvi commented that a successful merger between Volatus and DDC could create a global leader in the drone industry. 

"The merger is expected to drive significant value for shareholders of both Volatus and DDC," he commented. "The growing drone delivery market, combined with Volatus Aerospace's innovative collaboration with Mitsubishi Electric U.S., positions the company at the forefront of the industry. This strategic move is anticipated to enhance long-term growth and profitability, benefiting Volatus DDC shareholders."

Analyst Opinions

Echelon Capital Markets analyst Rob Goff mentioned Volatus in a February 20 research note, specifically pointing to the company's authorization from the Federal Aviation Administration (FAA) in the U.S. to conduct commercial agricultural operations using drones.

Goff noted, "This removes the regulatory friction currently experienced by VOL's agriculture customers during the sales process and allows leasing options to its ~1,200 pilot network in the U.S. The authorization (after roughly one year's efforts) supports our bullish view on management's stewardship and its ability to build out a CA$45M+ revenue run rate of recurring and highly reoccurring business in 2024."

He gave Volatus a Speculative Buy rating and a target price of CA$0.68.

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

*Share Structure as of 5/30/2024

Marketbeat currently lists Volatus as a "Buy." The site also lists the average twelve-month stock price forecast for Volatus Aerospace is CA$0.75. The high and low forecasts are both set at CA$0.75.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 61.65% of the company. According to Reuters, Director and Chairman Ian Alexander McDougall owns 31.04% of the company with 39.02 million shares, and President and CEO Glen Lynch owns 30.6% of the company with 38.06 million shares.

Reuters reports that institutional investors in the form of Palos Management Inc. owns 0.10% of the company with 0.13 million shares.

According to Reuters, there are 125.68 million shares outstanding with 48.2 million free float traded shares, while it has a market cap of CA$23.4 million.

Market Watch notes that the company trades in the 52-week period between CA$0.08 and CA$0.35.

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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. James Guttman 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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