08:04 AM EDT, 05/21/2024 (MT Newswires) -- Drone Delivery Canada ( TAKOF ) , and Volatus Aerospace ( VLTTF ) will merge with the new company to continue as Volatus Aerospace Corp. ( VLTTF )

Subject to TSX Venture Exchange approval, the new company will continue trading under the ticker FLT. The merger is expected to close in the third quarter of 2024.

Volatus and Drone Delivery Canada ( TAKOF ) will immediately begin commercialization efforts. The combined company is expected to be cash flow neutral by the fourth quarter. It will have a shared management team led by Glen Lynch (CEO of Volatus) and Steve Magirias (CEO of Drone Delivery Canada ( TAKOF )). Volatus board chair, Ian McDougall, will chair the new company.

In connection with the merger, Volatus expects to raise $1 million. This includes a $425,000 loan by McDougall, that matures on May 31, 2029 and pays annual interest of 15%. Volatus will also complete a financing of unsecured non-convertible debentures for $980,000. Volatus has signed subscription agreements for the first tranche of $585,060 and may complete subsequent tranches.

The merger is not contingent on closing of the first tranche or any subsequent tranches.

The offering is expected to close on or about May 22.