Delta Drone International to Expand Its Australian Drone-Based Services Through Acquisition of Arvista Pty Ltd - Seite 2

The acquisition of 60% of the shares in Arvista is expected to be completed within 30 days on the terms and conditions noted below, following the satisfaction or waiver of the conditions precedent mentioned below.

Delta Drone International Limited | ABN 17 618 678 701
T [phone] | A: Level 27, 101 Collins Street, Melbourne VIC 3000

Commenting on the acquisition, Delta Drone CEO, Christopher Clark said, “Arvista is an excellent strategic fit for Delta Drone’s operations in Australia. The company has an excellent reputation and a blue-chip client base, serviced by an experienced and professional staff who are keen to utilise our co-ordinated services approach to grow the market opportunity.

“We look forward to not only growing with the Arvista team, based on their experience and relationships in Western Australia, but to also assist Arvista in expanding their scope beyond pure surveying, to include the full range of drone-as-a-service products that DLT currently offer our multinational mining clients in the international arena, such as AI-based model analysis, security & surveillance, blast monitoring and asset inspection.”

Delta Drone International Chairman, Eden Attias said: “Australia is the key immediate growth market for Delta Drone International. To scale quickly in this market, we needed to ensure that we found a culturally aligned company with the skillset and capability to harness our broader industry-leading drone services. The transaction is well funded from our cash reserves and is expected to be earnings accretive and to provide the foundation for Delta Drone International to achieve growth in FY22.”

Key deal terms

• DLT to purchase 60% of the shares in Arvista Pty Ltd, which owns the Arvista business and includes all such assets that are required to operate the Arvista business, from the existing shareholders in Arvista being Investmin Pty Ltd, Evan Mckern and Shane Mcleay and Karen Mcleay (Sellers) via a Share Purchase Agreement.

• The Enterprise Value upon which the acquisition is based is $1.6 million for the whole of the business.
• The purchase price for the 60% of the shares being purchased by DLT (Initial Transaction) is to be paid as follows:
  • $300,000 in cash (out of DLT’s existing cash reserves), payable at completion of the Initial Transaction (Completion);

• 9,600,000 new shares in DLT, to be issued at Completion, at a deemed issue price of $0.04 per share. These shares will be escrowed for a period of 24 months post Completion;
• $276,000 in cash (out of DLT’s existing cash reserves), to be paid within one month after DLT releases its FY21 Annual Report to the ASX (the Second Payment); and
• If prior to the Second Payment, DLT conducts an equity capital raising under which it raises at least $1.5 million via the issue of DLT shares at a price that is less than