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© bakhtiarzein dreamstime.com Electronics Production | June 10, 2016

Drone USA signs letter of intent to acquire supplier

Drone USA, a developer and manufacturer of low altitude UAV's, has signed a letter of intent to acquire a west coast distributor and seller of spare part and replacement equipment customers that include the US Department of Defense.
Pursuant to the agreement, Drone USA will acquire the entire operating business of the unnamed distributor, which will be accretive to Drone USA’s earnings. For the last twelve months ended May 31, 2016, the distributor reported revenues of approximately USD 22.3 million, and earnings before interest, taxes, depreciation and amortization of approximately USD 1.93 million.

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."

Bannon continued saying that: "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.”

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