NEW YORK, Nov. 07, 2016 (GLOBE NEWSWIRE) — Drone USA, Inc. (OTC:DRUS) (“Drone USA” or the “Company”), a developer and manufacturer of low altitude Unmanned Aerial Vehicles (“UAV”) and related technologies, today announced that it has signed a Letter of Intent (“LOI”) to acquire a global engineering, procurement, manufacturing and materials management company that specializes in military and commercial equipment and provisions. If acquired, the business will become an integral part of the growing aerospace, UAV and related technologies business for Drone USA.
The proposed transaction will significantly expand Drone USA’s offerings to include manufacturing capabilities of engine and spare parts for commercial, recreational and military aircraft, a support staff and a 21,000 square foot warehouse. For the trailing twelve months ended October 31, 2016, the business reported revenue of $15.75 million and earnings before interest, taxes, depreciation and amortization of approximately $1.6 million.
Michael Bannon, Drone USA’s Chief Executive Officer commented, “We were initially attracted to this business due to its outstanding reputation within the industry and upon further due diligence noticed synergies between the prospective acquisition and Drone USA in terms of an aligned customer base that includes foreign military and police accounts. In addition, over its history the acquisition has developed strong ties to manufacturers globally, and we are confident that the proposed transaction will fit into our business model as well as add value for our shareholders over the long term. We look forward to moving forward with a definitive agreement and will continue to aggressively pursue potential acquisitions within the UAV and aerospace industry that have proven quality systems and products, as well as low cost sourcing and supply chain management already in place.”
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.