NEW YORK–(BUSINESS WIRE)–Drone USA, Inc. (OTC Markets:TWDLD) (“Drone USA” or the “Company”), a developer and manufacturer of low altitude Unmanned Aerial Vehicles (UAV) and related technologies, announced today that the Company has submitted a letter of intent to acquire a west coast distributor (“the seller”) of spare and replacement equipment and machine parts with major customers that include the United States Department of Defense (DoD) and commercial customers worldwide.
Pursuant to the agreement, Drone USA will acquire the entire operating business of the seller which will be accretive to Drone USA’s earnings. For the last twelve months ended May 31, 2016, the seller reported revenues of approximately $22.3 million, and earnings before interest, taxes, depreciation and amortization of approximately $1.93 million. Drone USA for consideration of the acquisition intends to use a combination of cash and stock.
Michael Bannon, Chief Executive Officer of Drone USA, commented, “We are excited to complete this transaction, as it will strengthen our DoD distribution network and be accretive to earnings. At a time when the fundraising landscape has a high degree of uncertainty, we have been afforded an opportunity, as a public company, to utilize stock as payment for this transaction. Currently, we are in discussions with other potential acquisition candidates that share Drone USA’s vision and recognize the potential value of our business. We believe that our long term objectives of growing the Company through strategic acquisitions will serve to accelerate the build out of the Company and provide us with the momentum needed for organic growth as well as increase value for our shareholders.”
Details pertaining to the transaction have not yet been disclosed.
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of growth; and assumptions relating to the foregoing. Such forward looking statements are generally qualified by terms such as: “plans, “anticipates,” “expects,” “believes” or similar words of like kind. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information. These factors are discussed in greater detail in the company’s business plan and filings with the OTC Markets Group.