- Delta Drone International (DLT) has signed a deal to sell its drone safety business
- The French all-encompassing drone business reached an agreement to divest its subsidiary, ParaZero Technologies
- The all-cash deal is worth approximately $6 million
- The company retains usage rights in relation to the use of the technology and products developed by ParaZero
- Delta Drone last traded at 1.9 cents on January 27
Delta Drone International (DLT) has signed a deal to sell its drone safety business.
The French all-encompassing drone business reached an agreement to divest its subsidiary, ParaZero Technologies.
A consortium of investors led by Medigus and facilitated by Israeli venture capital firm L.I.A Pure Capital Ltd has agreed to the purchase.
The all-cash deal is worth approximately $6 million.
A total of $5.1 million is to be paid upfront, upon completion of the deal. The remaining $0.9 million will be released from escrow 12 months later.
The company says the sale will allow it to “invest in building our team and to aggressively
accelerate growth across all our drone services businesses”.
Money will be used to “pursue opportunities for investment in new drone-based
software and geospatial data-related technologies that are more directly related to its ongoing service offerings within the Australian and African markets”.
Delta Drone will retain usage rights in relation to the use of the technology and products developed by ParaZero.
There are no regulatory conditions that would prevent completion of the transaction, which is expected to be completed later this month.
“ParaZero and its dedicated team were the inspiration for listing the company on the ASX in 2018 and have been an important part of the company since that time,” said Delta Drone International CEO Christopher Clark.
“With the drone services side of our business experiencing rapid growth, we believe now is the time to focus on the drone services business and still retain the opportunity to utilize the ParaZero products and services on a commercial basis.
“The exposure to ParaZero that we have retained through the transaction will also enable the company’s shareholders to benefit from the future success of the ParaZero technology.”
Delta Drone last traded at 1.9 cents on January 27.