- Drone safety systems company, ParaZero (PRZ) has signed a letter of intent to purchase Delta Drone South Africa
- This letter is a baseline, meaning both companies will discuss until they enter into a binding term sheet, which will set out the final details of the purchase
- However, just minutes after this was released the ASX suspended ParaZero, as there was limited information
- ParaZero said when the binding-term sheet is completed, the company will be back in trading
- Last trading, ParaZero was selling shares for 3.6¢ per share
Drone safety systems company, ParaZero (PRZ) has announced it will purchase Delta Drone South Africa.
The company said it has executed a letter of intent to Delta.
Delta is a wholly-owned subsidiary of Delta Group, a French-based company that is a leading international player in civilian drones for professional use.
This letter is a baseline, in which both companies will discuss until they enter into a binding term sheet, which will set out the final details of the purchase.
ParaZero CEO Eden Attias is excited about the potential of the purchase.
“ParaZero is excited about the potential for the acquisition to strengthen the short, medium and longer-term prospects for the company,” Eden said.
“Delta Drone South Africa, under its Rocketmine brand, generated revenues of circa US$2.5 million in 2019, which will bolster ParaZero’s bottom line and underpin R&D activities,” he added.
Rocketmine is a market leader in the provision of drone services for mining companies, in particular, Africa. Clients include major global mining companies such as BHP Billiton, South32, Rio Tinto and Newmont.
Rocketmine offers a range of services, which include aerial surveying and mapping, security and surveillance, and blast monitoring and fragmentation analysis.
“The use of drones in mining is going to be a significant growth area, we are creating a roadmap for R&D so that we can quickly capitalise on our competitive advantages in this rapidly expanding market,” Eden told the market.
However, just minutes after this was released the ASX suspended ParaZero as it said it wants more information on the deal.
“If ASX is satisfied that PRZ has provided sufficient information to enable its securities to be reinstated and security holders approve the Proposed Acquisition,” the ASX told the market.
“It is expected that PRZ’s securities will again be suspended from quotation immediately following such security holder approval and will remain suspended until PRZ has recomplied with Chapters 1 and 2 of the Listing Rules,” it added.
ParaZero understands this and believes it will start trading once the binding term sheet is finished or the letter of intent has been terminated.
The company is aiming to be a global leader in drone technology
“This acquisition is the first step in our roadmap as we seek to bring the world’s best engineers together under one umbrella to solve a number of business challenges using drone technology,” Eden explained.
Last trading, ParaZero was selling shares for 3.6¢ per share.