DELTA DRONE - Clarification and outline of the 2020-2021 plan’s guiding principles - Seite 2

Pursuant to this agreement, Ott Ventures acquired from DDrone Invest, a subsidiary of Delta Drone, all the 120 780 OCEANE convertible bonds it held. All these OCEANE will be converted by Ott Ventures in the next few days into new Delta Drone shares, with immediate dividend rights, which shall be admitted for trade on Euronext Growth Paris on the same listing as the existing ordinary Delta Drone shares (ISIN code: FR0011522168, ticker symbol: ALDR).
Upon completion, Ott Ventures will hold approximately 26% of Delta Drone’s capital.

The agreement also includes an industrial aspect, with the creation in the upcoming weeks of a joint subsidiary based in Prague (Czech Republic), the main purpose of which will be to market Delta Drone’s professional solutions throughout Eastern Europe. This new entity will also benefit from the support of a European network (Netherlands, Germany, Poland, Greece and Russia).

Christian Viguié, Chairman and CEO of Delta Drone said the following about the agreement: “We are very happy to welcome Ott Ventures as a capital investor. This friendly addition of a reference shareholder represents the culmination of several years’ effort and is the logical follow-up to a patient and ongoing strategy aiming to build a top-tier international group in the very innovative sector of professional drones for civilian use.”

For his part, Jean-François Ott, Chairman and CEO of Ott Ventures, said: “Ott Ventures decided to invest in the civilian-drone market because we think there is potential for very strong and rapid growth. Ott Ventures wishes to contribute, thanks to its networks, to accelerating Delta’ Drone’s growth. We are indeed convinced that Delta Drone is particularly well-positioned to become a major player in the drone sector on a global scale.”

The Delta Drone Group’s general situation

After five years during which the Group progressively reorganized itself to build a solid foundation and create an international presence, the current situation is as follows:

• The Group’s activities are now clearly organized in two divisions:
  • Professional solutions, each with a strong and identifiable brand: ISS SPOTTER (autonomous security system), COUNTBOT (warehouse-inventory solution), ATMOS (aerial choreography system) and ROCKETMINE (solution for digitizing mines).
  • Related services, which constitute a complete value chain that supports the implementation of the professional solutions (engineering and design, management of regulations, site audits, providing operators and pilots, customer service and maintenance, etc.).
• The creation of a new production site in Dardilly (69) and the industrial and commercial launch of three innovative solutions in the fields of security (ISS SPOTTER), warehouse inventory (COUNTBOT) and events (ATMOS) represent strong growth vectors in France but also – and especially – abroad.
• The ROCKETMINE solution’s success in Africa allowed the entities grouped under Delta Drone South Africa to show a profit in 2019. The recently announced project (see press release dated 12 March 2020) with PARAZERO will make distribution possible in other geographic areas where mining is prominent, such as Australia.
• The recently announced transformation of the subsidiary DELTA DRONE MAROC into a profit center with a commercial activity strongly supported by our partner EM DIGITAL could accelerate the activity’s development in a large part of Africa.
• The full effect of the 2018-2019 plan and the measures included in the 2020-2021 plan should allow the Group to continue significantly decreasing operating expenses.
• On 13 March 2020, the Group’s cash position was at approximately €2M.