#Drone #Stocks 2020: #Defense and Delivery and Growing
Market Applications - (CSE: $DFLY.C)
(OTCQB: $DFLYF) (TSXV: $FLT.V) (NASDAQ: $MSFT) (NYSE: $UPS) (NYSE: $CVS)
Point
Roberts WA, Delta BC – January 17, 2020 - Investorideas.com, a leading
investor news resource covering drone and unmanned vehicle stocks releases a
sector snapshot on the race for dominance in the drone market.
Read this news in
featuring ($DFLY.C) (OTCQB: $DFLYF) (TSXV: $FLT.V) (NASDAQ: $MSFT) (NYSE: $UPS)
(NYSE: $CVS) in full at https://www.investorideas.com/news/2020/technology/01171Defense-DFLY-FLT-MSFT-UPS-CVS.asp
Research
and Markets just reported, “The global
drones market reached 18.11 Billion USD in 2018 by registering a CAGR of 19.90%
across the globe. Moreover, the market is expected to reach 88.57 Billion USD
by the end of 2027.”
They also noted, “The growing applications of drones in the commercial sector such as
oil & gas, construction, energy, entertainment, healthcare, and delivery
industries accompanied with others are anticipated to drive the growth of
drones market during the forecast period.”
Recognized as being
a leader and at the forefront of
technology for over 21 years, Saskatchewan based Draganfly Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8) is aiming
high and expanding the company’s presence with an acquisition that adds on
another 10 years of expertise.
As an article in General Aviation News reported yesterday,
“Since the beginning, Draganfly’s drones and unmanned aerial systems have paved
the way for many others to follow.”
Draganfly, an industry-leading systems developer within the commercial Unmanned
Aerial Vehicle (“UAV”) and the
Unmanned Vehicle Systems (“UVS”) industry announced today that it has entered into an arm’s-length
definitive share purchase agreement, dated January15, 2020, with the
shareholders of Dronelogics Systems Inc. which sees Draganfly acquiring all of
the shares of Dronelogics for cash and common shares of Draganfly.
Dronelogics is a solutions integrator for custom robotics, hardware
and software that provides a wide scope of services including sales, training,
rentals, maintenance, flying and data processing services based in Vancouver,
Canada.
Transaction Highlights
• The Transaction
continues to establish Draganfly as a leading, diversified drone organization. Dronelogics has been growing steadily with revenues in excess of
CAD$3.0 million and expected 2019 year-over-year growth of 20.0%. Draganfly
management believes the Transaction will generate combined pro forma revenue of
between CAD$6 to CAD$7 million for the fiscal year 2020, representing an
increase in Draganfly’s revenue of between 23% and 43%.
• Strategically
Positioned to Leverage Draganfly’s Brand: Dronelogics is
a complementary business to Draganfly and the acquisition of Dronelogics will
expand the product offering of Draganfly in the integration and engineering
segments. This will expand Draganfly’s total addressable market and enhance its
position as a leader in the UAV and UVS industry.
• Expanded Customer
Base: Draganfly and Dronelogics have limited overlap in
customer base, representing an opportunity to cross-sell the expanded product
offerings and further customized solutions to existing clients.
• Established
History of Providing Drone Services: Dronelogics
has been in business for 10 years, working closely with Fortune 500 companies
to provide insights into inventory metrics, asset management, volume-metric
calculation and digitizing assets, among many other applications.
Another
Canadian-based drone company, Drone
Delivery Canada Corp. (DDC) (TSXV:
FLT)
(OTC:
TAKOF)
is developing a drone delivery platform to provide next generation logistic services
for Canadian retailers, service providers and government agencies.
Recently
the Company reported that in December
2019, DDC’s Moose Cree First Nation’s project received the first conditional
approval for one of its funding applications, which, subject to entering into a
definitive agreement and satisfying any conditions imposed by the funder, would
enable Moose Cree First Nation’s Remote Communities Initiative to pay DDC for
its drone delivery service scheduled for implementation in Q1 2020.
“As 2019 comes to a close, I am pleased to
report the first financial approval for one of many remote community
opportunities we are pursuing,” said Michael Zahra, President & CEO of DDC.
“Looking ahead to 2020, DDC will actively seek to close more customers in many
different business verticals both in Canada and abroad.”
CES 2020, the world's
largest gathering place for all those who thrive on the business of consumer
technologies, showcased what’s new in drone technology with Doosan's hydrogen
fuel cell drones winning the Best of Innovation
Award for Drones & Unmanned Systems.
Doosan Mobility
Innovation (DMI) announced on January 8 that
it signed an agreement with Microsoft (NASDAQ: MSFT) to develop
applications for hydrogen fuel cell-powered drones. Head of DMI, Doosoon Lee
and Vice President of Microsoft, Korea Miyoung Woo attended the signing
ceremony.
From the news: ”Microsoft’s cloud
computing platform, Azure, and advanced AI and IoT technologies will be adopted
to DMI’s drone software and monitoring solution and a joint sales campaign will
take place.”
“If
DMI’s hydrogen fuel cell-powered drones, which can fly for two hours, meet
Microsoft’s advanced technologies, users will be empowered to collect, analyze
and utilize a massive amount of data, leading to significant synergy creation
for both companies.”
The
drone package delivery market is projected to grow from USD$2.1 billion in 2023
to USD$27.4 billion by 2030, at a CAGR of 44.7% during the forecast period, says Research and
Markets.
According to a report from CNBC, “The world’s biggest players in logistics and packages are racing to make commercial drone delivery a reality, with Loop Capital Markets saying “UPS and Alphabet have the early lead” on Amazon, FedEx and others.”
UPS
(NYSE: UPS) subsidiary, UPS
Flight Forward Inc. (UPSFF) and CVS Health Corporation (NYSE: CVS) subsidiary, CVS
Pharmacy, Inc. last November announced the
successful completion of the first revenue-generating drone delivery of a
medical prescription from a CVS pharmacy directly to a consumer’s home. This
was followed by another delivery of a medical prescription to a second customer
in a nearby retirement community. Both flights occurred on Friday, Nov. 1,
2019, using the M2 drone system by UPS partner and drone systems developer
Matternet.
Dronelife.com,
looking at predictions for
2020,
quoted an inside expert in the sector. ”This year, while the industry will
grow, we do expect consolidation. Established players in the drone ecosystem
will focus on revenue generation and continued growth, and smaller players
might merge with others.”
Draganfly
Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8) is banking on
just that strategy as it flies into 2020 with its acquisition.
Cameron Chell, Chairman and CEO stated, "We are excited to
welcome the whole Dronelogics team as part of Draganfly. Dronelogics has
established itself as a trusted drone service provider. Its business is highly
complementary to our business and the combined entity will deliver an enhanced
product and service offering to the combined client base. This transaction
further establishes Draganfly as a leading, publicly traded drone company, and
provides a strong platform for us to pursue continued consolidation in the
industry."
For a list of drone
stocks and other defense stocks visit Investorideas.com directory
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