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ParaZero offer drone parachutes amidst changes in the industry

Technology
ASX:PRZ
10 July 2019 22:39 (AEST)

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The use of drones is picking up major momentum and today, Aussie company ParaZero says its amidst the wave of new business opportunities.

The claims from the drone parachute manufacturers come after the Federal Aviation Administration (FAA) signed its fifth waiver in five weeks regarding drones.

An FAA waiver is a regulation ‘magic-wand’ that allows specified aircraft or products to be used outside of the regulated stipulations. Today’s latest FAA waiver for drones was awarded to telecommunication giants, Verizon Media.

Verizon (owners of Yahoo! and AOL) have been granted the use of drones operations over people. This news is similar to the latest drone delivery shenanigans by companies Amazon and Dominos.

The waiver though, stipulates the issued use of a drone parachute, to which ParaZero’s is a standard and supplier of.

ParaZero believes its autonomous drone parachutes allow for safe flight operations over people, presenting a business opportunity.

“The FAA will require each applicant to provide the testing, documentation, and statement of compliance listed in ASTM F3322-18 in their applications using the same drone and parachute combination” stated the FAA in a press release on June 5 this year.

The press release was in consideration to the FAA granting a waiver at the beginning of June to U.S. general contractors, Hensel Phelps.

This waiver was groundbreaking for the drone industry, marking the first time the FAA had collaborated with drone businesses in developing a public standard.

Subsequent FAA waivers this month after Hensel Phelps were awarded to Beverly Hills Aerial, Alaska Aerial Media and North Dakota Department of Transportations.

Shares in PRZ are priced at 7.5 cents today, a 7.14 per cent premium from yesterday’s closing price in the market.

Currently, ParaZero’s market cap is valued at $8.191 million.

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