Brief: Drone Volt Signs LOI For Sale And Production Of Its Two Drones In U.S.

Drone Volt SA

25/08/2020 06:17

Aug 25 (Reuters) - DRONE VOLT SA  ALDRV.PA :
    * ANNOUNCED ON MONDAY DRONE VOLT AND ITS SUBSIDIARY
AERIALTRONICS
SIGNED LETTER OF INTENT (LOI) WITH AQUILINE DRONES
    * LOI TO GRANT LICENSE RIGHT FOR PRODUCTION AND SALE OF ITS
DRONES: HERCULES 2 AND ALTURA ZENITH WITH ITS PENSAR SMART
CAMERA IN THE UNITED STATES
    * DEAL'S MINIMUM AMOUNT OF USD 850,000 FOR FIRST YEAR
    * DISCUSSIONS HELD FOR SEVERAL MONTHS SHOULD LEAD TO
DEFINITIVE
CONTRACT IN THE COMING WEEKS
    * AQUILINE DRONES PLANS TO INVEST TO PRODUCE THE HERCULES 2
IN THE
UNITED STATES AT ITS PLANTS IN HARTFORD, CONNECTICUT, FROM
SEPTEMBER 2020, FOLLOWED BY ALTURA ZENITH WITH PENSAR SMART
CAMERA AT END OF YEAR, AT RATE OF 1,000 UNITS PER MONTH
    * AQUILINE DRONES AIMS TO REACH PRODUCTION OF 10,000 UNITS
PER
MONTH AS ITS ULTIMATE GOAL IN THE LONG TERM
    * IN RETURN FOR 5-YEAR LICENSE AGREEMENT, REVIEWED ANNUALLY,
DRONE
VOLT WILL RECEIVE 10% OF THE MSRP FOR MINIMUM ANNUAL LICENSING
FEE OF US$250,000 FOR THE ALTURA ZENITH AND US$150,000 FOR
HERCULES 2
    * THESE AMOUNTS WILL BE INCREASED BY 10% EACH YEAR
    * IN ADDITION, ON THESE 2 MODELS, USD 450,000 WILL BE ADDED
TO
THESE AMOUNTS IN FIRST YEAR TO COMPENSATE FOR TRANSFER OF
KNOW-HOW
    * EQUITY HOLDING SHOULD BE INCLUDED IN THE AGREEMENT IN FORM
OF
EXCHANGE OF 10% OF DRONE VOLT SHARES FOR 10% OF AQUILINE DRONES
SHARES

    
 Source text for Eikon:  ID:nACT64773  
 Further company coverage:  ALDRV.PA  

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