Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB) reports that it has completed its first field deployment of remotely piloted aircraft in support of wildfire suppression in Western Canada. Volatus drone pilots were deployed to gather data for situational awareness, minimizing airspace risk, and identifying wildfire threats that are not easily visible to humans.
A record 100,000 square kilometers of Canadian forests have been burned by wildfires in 2023. Remotely collected aerial intelligence can help firefighters identify hot spots in difficult-to-reach areas. According to Walter Weselowski, the team lead of special flight ops for Volatus, "Fires are not always burning in plain sight; they can be smoldering inside tree trunks or in subsurface locations. Operating from a safe distance, a drone pilot trained in thermography can identify and geolocate these hot spots as well as determine whether a contained fire is in danger of reignition, providing critical information to the fire management team to aid them with planning, resource management, and assigning tasks and priorities for the day. This process is a lot faster and safer than firefighters walking through hazardous terrain surveying the fire line."
Volatus is a leading provider of integrated drone solutions throughout the North American region. It serves civil, public safety, and defense markets, including wildfire suppression. According to Glen Lynch, the CEO of Volatus, "Drones offer firefighters improved situational awareness and the ability to investigate sites that would otherwise be unsafe for firefighters or piloted aircraft. With the current and forecasted shortage of qualified crew for piloted aircraft, we expect the demand for remotely piloted aircraft to accelerate."
Increasing Demand
The pandemic expanded demand for drones because of lockdown necessities. A number of industries outside of the defense sector have begun to utilize drones.
Demand for drones is being driven by advances in technology, which make them more versatile, as well as their greater precision and lower operational risk.
The Sky is the Limit for the Drone Market
According to Rob Goff of Echelon Wealth Partners Inc., Volatus is an encouraging prospect for investors: "The current enterprise valuation discounts the value of Volatus’ existing portfolio and current revenue run rate, leaving aggressive potential from positive revaluations against both organic and inorganic growth. We look for revenue performance and profitability measures to quickly differentiate providers where the sector is often viewed collectively." Goff went on to explain that "With greater differentiation or discernment, we look for wider valuation ranges across companies with larger, more efficient providers expected to be further empowered through much greater and more efficient access to capital markets. We look for Volatus to emerge in a stronger relative position as these waves unfold. We look for Volatus’ successful emergence to re-align its relative valuation."
Volatus has pursued aggressive expansion across North America, Latin America, and Europe. It is a vertically integrated business with a focus on commercializing technologies. It develops solutions based on industry needs or requests. It has an mix of organic and inorganic growth.
Ownership and Share Structure
Streetwise Ownership Overview*
Volatus Aerospace Corp. (VOL:TSX; VLTTF:OTCQB)
Ian Alexander McDougall owns 33.74% of the company with 39.02 million shares, Glen Lynch owns 33.26% with 38.46 million shares, and Luc Masse owns 0.07% with 0.08 million shares.
Palos Management owns 0.52% of the company with 0.60 million shares. There are no strategic investors.
The company reports that it has CA$6.8 million in the bank, with a monthly burn rate of CA$500k.
In terms of negatives, there are two sets of warrants expiring on December 22, 2023, with an exercise price of CA$0.65 and CA$0.75. A third set expires on October 5, 2024 at CA$0.50.
There are 115.63 million shares outstanding, and 38.08 million free float traded shares. The company has a market cap of CA$24.58 million. The company reports no 52-week period.
[SMNLINSERT]
Important Disclosures:
- Volatus Aerospace Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Volatus Aerospace Corp.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
For additional disclosures, please click here.
