Extraordinary general shareholders’ meeting of 24 April 2020

Delta Drone secures the means to implement its development plan - Seite 2

As regards changes in the Group’s scope of consolidation, transactions started at the beginning of the year were able to proceed as scheduled. Thus, the sale of the HYDROGEOSPHERE subsidiary has entered the final phase and should be completed in the next few weeks.

In Europe, the creation of a subsidiary called DELTA DRONE EUROPA, co-owned by Delta Drone and OTT Ventures (new reference shareholder) is underway. This new entity, which will be based in Prague (Czech Republic) will, more specifically, be in charge of marketing the solutions currently available, in particular the ISS Spotter and CountBot solutions, which will benefit from Ott Ventures’ significant business network in many European countries.

Outside Europe, the rapprochement of DELTA DRONE SOUTH AFRICA with the Australian company PARAZERO Ltd is proceeding as planned. It is under this framework that a new entity, ROCKETMINE AUSTRALIA, is currently being created in Adelaide for mining solutions mines on the Australian market.

Financing the Group’s development plan

All of Delta Drone’s teams are currently focused on implementing the 2020 – 2021 plan and its three pillars: consolidated revenue of €30M, a positive operating margin of 10% and 30% of revenue generated by activities outside France.

The success of this plan, the three pillars of which remain unchanged despite the current economic situation, requires investments and disbursements to begin production of the solutions (including the investments necessary for the new industrial site in Dardilly), the implementation of local customer and maintenance services, and the strengthening of the sales organization. As previously announced, the overall corresponding financing necessary was evaluated at €3M.

On the date of the general meeting, the Group’s cash position was of €2.3M, €0.5M of which was held by Delta Drone South Africa, the South African subsidiary.

The latest ORNAN agreement, set up at the end of last year, has ended as all the bonds have been converted. The only financial instruments that might now cause the creation of new shares are warrants (BSA), with the BSA Y listed on the Euronext Growth market. The exercise of all these warrants would result in additional resources totaling €6M and the creation of 61 031 144 new shares (11.2% of the capital).