Deveron US Acquisition Targets US AgTech Market
Toronto, Ontario--(Newsfile Corp. - August 13, 2019) - Deveron UAS Corp. (CSE: DVR) ("Deveron" or the "Company") a leading agriculture digital services and analytics provider in North America is pleased to announce it has entered into an agreement to acquire Kansas City, Missouri based digital agriculture provider Atlas Team ("Atlas"). The acquisition will allow Deveron to continue to build upon its expansion into the US agriculture market providing data acquisition services for drones and soil sampling as well as data analytics. Atlas currently serves farmers and agriculture industry leaders across 13 states in the US.
The US agriculture sector is almost ten times the size of its Canadian counterpart, comprising over 900 million acres of farmland. The USDA recently estimated that agricultural production from the some two million farms in the United States amount to US$389 billion in total agricultural goods. With average crop farm expenditures topping US$205,000 per farm in the US, a considerable opportunity exists for 10% improvement in yields or reduction in costs from digital solutions.
Scott Jackman, the principal at Atlas, will become the President of Deveron's US subsidiary. Mr. Jackman spent 22 years in the US Army as an aviation officer. He served multiple tours overseas where he commanded in combat. Scott also led numerous Department of Defense level programs spanning intelligence and operational activity. More recently, he founded Atlas Team which has grown into a precision agriculture and remote sensing company providing support to clients ranging from farmers to multi-national corporations.
"Farmers in the United States are looking for new digital solutions and ways to improve farm outcomes," commented David MacMillan, Deveron's President and CEO. "Atlas has an established base of operations that immediately expands our current reach throughout the US Midwest. We are also adding an incredible leader in Scott Jackman to our team, who will focus on scaling our digital service offerings throughout the US market. We know data acquisition services and analytics improve return on investment on the farm and are excited to see the growth ahead as our footprint expands."
The purchase price for the acquisition of Atlas comprises 250,000 shares of the Company, issued to the shareholders of Atlas, at a deemed price of $0.30. Under the terms of the agreement, the shares will be released from escrow in 3 tranches on an annual basis, commencing on the first anniversary of the closing date. All securities issued in connection with the acquisition are subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. Closing is expected to occur by the end of the month.
About Deveron UAS: Deveron is a leading agriculture technology company focused on providing data acquisition services and data analytics to the farming sector in North America. Through its on-demand network of drone pilots and soil sampling technicians, the Company is providing scalable data acquisition solutions in the imagery and soil space. Additionally, through its wholly owned subsidiary Veritas Farm Management, the company provides growers in North America with independent data analytics and insights on the massive amount of data being generated on farms today.
President & CEO Deveron UAS Corp.
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This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world-wide price of agricultural commodities, general market conditions, risks inherent in agriculture, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.
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