has executed a binding Letter Agreement outlining the terms and conditions upon which Deveron will acquire 2487473 Ontario Inc. operating as Eagle Scout Imaging.
Through the deployment of Unmanned Aerial Systems, Eagle Scout acquires high resolution aerial imaging data of crop acreage. Eagle Scout then processes the data and develops prescriptions to improve crop yield.
“We are very excited to be moving in this new direction,” commented David Macmillan, Director and VP Corporate Development. “Our work over the past year suggests enormous investment opportunities exist across multiple verticals where UAS technology can be applied. We have identified a number of potential acquisition and joint venture possibilities in this area and we are pleased to be working with Eagle Scout to build the premier Canadian precision UAS agricultural brand.”
“Drone technology applications are growing exponentially worldwide. I encourage shareholders and potential investors to join our community and learn more about UAS by visiting our website below.”
Eagle Scout uses drones and state-of-the-art camera, sensor and software technologies to collect data that can be used with existing farm GIS software for variable rate fertilizing, seeding, pesticide applications and other prescription management solutions. Eagle Scout provides Normalized Difference Vegetation Indexing (“NDVI”) imaging as well as other valuable information related to plant health which ultimately enhances yield and maximizes profitability. Eagle Scout is fully insured and approved by Transport Canada for activities in Ontario under a Special Flight Operating Certificate. Ontario has over 7 million acres of prime agricultural land, and Eagle Scout is well positioned to capture the growth opportunities that exist in this new market.
The use of drones is transforming how aerial images and data are collected and analyzed in many industries with applications in pipeline inspection, forestry management, precision agriculture, media production, mine site surveying and many others. A recent industry overview by CB Insights reports that capital is flowing into UAS companies at an ever accelerating rate. Recently, a UAS company completed Canada’s third largest technology financing of 2015 at $60 million. These capital inflows are generating rapid improvements in UAS hardware and software and uncovering new applications almost daily.
Under the terms of the transaction, Deveron will issue up to 2.5 million common shares and up to 1.25 million warrants on the basis of one share in exchange for each common share of the issued and outstanding common shares in the capital of Ontco (the “Ontco Shares”) and one Deveron Share purchase warrant (a “Deveron Warrant”) for each Ontco Share purchase warrant (an “Ontco Warrant”) not exercised by the holders thereof prior to the Closing Date which shall continue to vest or be convertible on the schedule and terms established at the time of the respective grants.
In addition, Deveron may issue up to 1,000,000 Performance Shares over a three year period depending on certain revenue targets being met. Ontco will nominate two directors to join the four current directors on the board of Deveron.
Source: Press Release