Global UAV Announces LOI with Draganfly to Sell Pioneer Aerial and High Eye Aerial
Vancouver, British Columbia--(Newsfile Corp. - May 19, 2020) - Global UAV Technologies Ltd. (CSE: UAV) (OTC: YRLLF) (FSE: YAB2) (the "Company" or "Global UAV"), a drone technology company, is pleased to announce entering into a non-binding Letter of Intent on May 18, 2020 (the "LOI") with Draganfly Inc. (CSE: DFLY) ("Draganfly") for the sale (the "Proposed Transaction") of its wholly-owned subsidiaries, Pioneer Aerial Surveys Inc. and High Eye Aerial Imaging Inc. (the "Global UAV Subsidiaries"). The Proposed Transaction if completed will constitute a fundamental change of Global UAV within the meaning of the policies of the Canadian Securities Exchange Inc. (the "CSE") and will be subject, to among other things, satisfactory due diligence, the negotiation and execution of a definitive agreement, approval by the CSE and by the shareholders of Global UAV, respectively. Subsequent to the completion of the Proposed Transaction, the Company will be exploring various strategic alternatives with respect to its future business in the UAV sector or otherwise.
Material Terms of the Agreement
The material terms of the Proposed Transaction are as follows:
- On the execution of the LOI, Draganfly will pay to Global UAV a refundable deposit of CAD$25,000.
- On the closing of the Proposed Transaction (the "Closing"), Draganfly will have paid to Global UAV aggregate consideration of CAD$350,000, which will consist of the following: (i) a cash payment of CAD$125,000 made pursuant to a private placement for common shares of the Company which shall be completed within 4 weeks of entering a binding agreement, and (ii) CAD$225,000 in common shares of Draganfly which shall be issued at a price per share equal to the 30 day volume weighted average price of the common shares of the Company subsequent to the date on which the LOI is executed.
- Draganfly will grant Global UAV a royalty of 7.5% of gross revenue generated from UAV magnetometer and LiDAR systems for a period of eighteen months from Closing and assume $50,000 in certain liabilities that have been incurred by the Global UAV Subsidiaries.
The Company will retain the Procyon 800 E design and IP of Novaerial Robotics Ltd. and will continue participate in the UAV industry through its shareholding in Draganfly and the royalty included as part of the Proposed Transaction.
Draganfly Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8) is the creator of quality, cutting-edge, unmanned vehicle systems and software that revolutionizes the way people do business. Recognized as being at the forefront of technology for over 21 years, Draganfly is an award-winning, industry-leading manufacturer within the commercial UAV and UVS space, serving the public safety, agriculture, industrial inspections and mapping and surveying markets. Draganfly is a company driven by passion, ingenuity and the need to provide efficient solutions and first-class services to its customers around the world with the goal of saving time, money and lives.
For more information on Draganfly, please visit: www.draganfly.com
About Global UAV Technologies Ltd.
Global UAV Technologies Ltd. is a diversified, vertically integrated drone technology company within the commercial Unmanned Aerial Vehicle ("UAV") sector. Through its wholly owned subsidiaries - Pioneer Aerial Surveys Ltd., High Eye Aerial Imaging Inc., UAV Regulatory Services Inc., and NOVAerial Robotics Inc.- Global UAV Technologies Ltd. provides a full spectrum of UAV-based services and products including drone research and development and manufacturing, flight services and regulatory compliance. Global UAV Technologies Ltd. will continue its growth through technology development, expanding the business of its current divisions and the continued evaluation of potential acquisitions. Global UAV is well positioned for growth as a vertically integrated drone technology company.
On behalf of the Board of Directors,
"James Rogers & Andrew Male"
Director & Director
For additional information please contact:
Neither Canadian Securities Exchange (CSE) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward- looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in public markets, service industries, manufacturing and the UAV Sector. As a result, actual results may vary materially from those described in the forward-looking statements.
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