The acquisition route is a fairly widely used one these days in the small-cap field. Wednesday, Toronto-based Drone Delivery Canada Corp. (TSX-Venture: FLT) has entered into a commercial agreement with DSV Air & Sea Inc. Canada, to deploy DDC's drone delivery platform for the use of DSV commencing at its new head office and warehouse in Milton, Ontario.
DDC will enable the first of multiple routes and deploy its DroneSpot takeoff and landing zones as well as additional drone flight infrastructure on DSV sites, and deploy its Sparrow cargo drone, with a capacity of up to 10 lbs. The first route will occur on a defined flight route within DSV's site in Milton, Ontario.
All operations will be conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorizations. Flights will be remotely monitored by DDC from its new commercial operations centre located in Vaughan, Ontario. DDC will commence deployment of the client site infrastructure this quarter and looks to begin providing drone delivery services under the Agreement in Q1 of 2020.
DDC CEO Michael Zahra said, “They will start using our proven Sparrow drone, patented FLYTE system, and newly launched commercial operations centre in early 2020. I am pleased to report we have a very strong funnel of global commercial opportunities and we expect to see continued sales announcements in 2019 for deployment in early 2020."
DSV will pay DDC a monthly fee for each drone route deployed. The initial term of the agreement is 15 months
Drone Delivery shares got lift of eight cents, or 11.3%, early Wednesday afternoon to 79 cents, on volume of 435,000 shares.
