After learning the world was leaning towards a modern form of a delivery system, this private company started the transition to becoming public. Prior to listing on the Canadian Securities Exchange in June of 2016, Drone Delivery Corp (CSE:FLT), had an unfamiliar start to the world of a publicly traded entity.
The transition from private company to a public entity started in December 2015, when Asher Resources, traded on the TSX-V as CAN, announced a reverse takeover by Drone Delivery Corp; a move that would change Asher from a mining play to one of technology. Asher announced in January that an amalgamation agreement had been reached with their subsidiary and Drone Delivery that among many conditions had Asher apply to list their common shares on the CSE and delist from the Venture Exchange and upon the closing of that agreement, Asher would rename itself Drone Delivery Canada Corp. Of significance was that 87% of the resulting issuer would be held by former Drone Delivery Canada Inc. shareholders. While the future structure of the company was being worked through, the company announced that another agreement had been established, this time with the City of Vaughan in Ontario. The company was to develop a drone delivery service “in the form of a pilot program”, no pun intended I am sure, for the city’s network of departments. This program will be the first of its kind in Canada and a significant step forward for the company.
Tony Di Benedetto, CEO of Drone Delivery Canada stated, “we will look to develop and build, and when ready and able, implement a fleet of delivery drones within the central business district in the City of Vaughan that will deliver mail, books, and parcels, in a clean, green, environmentally friendly way. We see this happening with regulations in place as early as 2018, if not sooner.”
In May, both Asher and Drone’s shareholders “overwhelmingly” approved the forward moves and the efforts contained within the amalgamation agreement from January 2016. That was followed by a June announcement that the amalgamation transaction was completed and the new company Drone Delivery Canada Corp had officially begun. At the time, the common shares of the new company had conditionally been accepted for listing on the CSE, following the usual sorting of red tape. As mentioned previously, Drone Delivery reserved “FLT” as their symbol.
To understand the specifics of what the company provides and how it will gain a foothold in the way customers seek out their products, have a look at what Amazon is doing. It is believed that drone delivery, already in play by Amazon and various other large companies in the U. S. is a disruptive technology, which will create a new market and eventually, for FLT shareholders, disrupt the existing market. Drone deliverable products are believed to provide less expensive, simpler and quicker delivery allowing customers to save and retailers to grow revenue. As evidenced by their progress, the company is developing services for not only retail but corporate needs. The company is the “first to market” in Canada and is confident to follow that with the appropriate government approvals. The network that accompanies the service is protected and private and their navigational logistics include “next generation flight control software” that along with GPS and satellite tracking, provides two-way telemetry.
The software also includes the ability to integrate client systems, including receipt confirmation, real-time tracking, visual delivery confirmation and allows for alerts, route planning with built in logs for maintenance, and scheduling of the same. The ability for the customer to fine tune the software to their specific requirements will lend well to seamless adaptation.
Proof of what the company is trying to achieve came in July when the results of their initial commercial testing were announced. Drone logistics platform 4.0 yielded positive results. It was reported that “both flight times and payload carry exceeded initial expectations”. Dubbing the platform as the “Railway in the Sky”, should emphasize the pioneering impact of the technology and should certainly not be confused with the speed at which products can be delivered.
Company CEO Tony Di Benedetto commented, “You cannot simply buy a drone for delivery purposes like you can for photography, so we are collaborating with Canada’s best in the breed to develop our own. There are many benefits to this; for instance, we will own all of the intellectual property and then simply outsource the manufacturing.” In conjunction with this success, the company reported that they have increased staffing, adding experienced “pilots” and that they are pleased with the inquiries they are fielding. It was included in that release that “at present, DDC is in active discussions with many large Canadian multinationals as well as government organizations which DDC is seeking to form partnerships with as it looks to commercialize its burgeoning technology.”
Further to those statements, the company announced in August that they had entered another agreement with a Canadian retailer, this time no name was given. An emphasis was given on the importance of rural delivery in the press release, which would suggest that as supply delivery, the company could be on its way.
They announced in September that “it has advanced its commercial testing and reports the Company has achieved positive results on its payload pickup and drop off capabilities utilizing its proprietary semi-autonomous autopilot system, which enables automated take-off, landings, waypoint navigation and pre-programmed maneuvers to occur.” These results should prove helpful as the company moves forward and attempts to gain government approval for “operator status.”
Like most new technologies, time will likely be the obstacle awaiting Drone Delivery, but the company has not sat idle as they continue to innovate and seek out opportunities.
In October of this year, the most significant announcement in Drone Delivery Corp’s history was released. It was reported that the company had received a “Special Flight Operations Certificate” from Transport Canada. The parameters of this certificate, “allows DDC the ability to advance its drone delivery technology and accelerated testing in the Canadian skies beginning with Southern Ontario.” Working this closely with the regulating agency is the most important step towards actual commercialization and therefore revenue. “We have large customer demand and we are seeing vastly increased market acceptance of our business moving us closer to our commercial goals”, said CEO Tony Di Benedetto.
The potential for another Canadian success story is definitely present here.
Retail shopping is changing, and it is anticipated that 75% of retail shopping will be done online by 2025.
With cash in hand, no debt, anticipated commercialization in 2017, patent pending Super Materials designs and customer agreements already signed, the sky’s the limit for Drone Delivery Corp.
Read what Investors are saying about “FLT” on our Drone Delivery Forum (Click Here)
Venture Recon (“VentureRecon.com”) is an electronic publication targeted towards independent investors, containing the opinions of our contributors on financial information, including, but not limited to, information on publicly traded companies and the stock market. The information is presented by Venture Recon (“VentureRecon.com”) and can also be based on information supplied by third parties. The information presented by Venture Recon (“VentureRecon.com”) is for informational purposes only. All articles and commentaries in this email are the results of an independent analysis and, even though we have made efforts in this regard, we cannot guarantee that the information is accurate and complete. The companies mentioned in this email are not responsible for the information that is presented. All information is subject to change, without notice, and Venture Recon (“VentureRecon.com”) is not responsible for updating the information contained in this email. The information presented is not destined to be, and does not constitute a sales offer nor solicitation of an offer to buy financial investments. Investors should consult their financial adviser before making any investment decisions concerning the companies mentioned. Our contributors may buy and sell the stocks of these companies.