Issue 6 2024

NEWS DRONE DELIVERY CANADA AND VOLATUS AEROSPACE CORP. ANNOUNCE TRANSFORMATIVE MERGER OF EQUALS CREATING GLOBAL LEADER IN DRONE TECHNOLOGY AND SERVICES • 50/50 merger of equals, creating a global diversified drone technology and services leader. • Combined company will be called “Volatus Aerospace Corp.”, leveraging the Volatus global name and brand, while maintaining Drone Delivery Canada’s name and brand for cargo operations. • Shared management team led by Glen Lynch (CEO of Volatus) and Steve Magirias (CEO of Drone Delivery Canada) with current Volatus board chairman, Ian McDougall, to become chairman of the combined company’s board. • Combined company anticipated to be cash flow neutral by the fourth quarter of 2024 and accelerate achievement of profitability goals in 2025, through a combination of immediate cost synergies and identified revenue opportunities. • Transaction anticipated to close in the third quarter of 2024 Drone Delivery Canada Corp. an awardwinning drone technology company focused on the design, development, and implementation of its proprietary technologies for remotely piloted aircraft operations with an emphasis on cargo delivery and Volatus Aerospace Corp. a leader in the operation of piloted and remotely piloted aircraft systems, are both pleased to announce that they have entered into a business combination agreement to combine the companies in a merger of equals transaction, with the combined company to continue under the name “Volatus Aerospace Corp.” and, subject to approval of the TSX Venture Exchange, continue trading under the ticker “FLT”. Under the Merger, which the boards of directors of both companies have approved, the combined company will be led by a board of directors and management team of experienced drone technology industry and business leaders, bringing together the cultures, strengths, and capabilities of both companies. By joining forces, Volatus and Drone Delivery Canada plan to immediately begin commercialization efforts, which is intended to enhance shareholder value by forging a robust, financially sound enterprise focused on immediate and long-term revenue with a clear path to sustainable growth and market leadership. Subject to customary closing conditions, the Merger is expected to close in the third quarter of 2024. Pursuant to the Merger, Volatus shareholders will receive 1.785 (the “Exchange Ratio”) Drone Delivery Canada voting common shares (each, a “Drone Delivery Canada Share”) for each Volatus common share (a “Volatus Share”) held (the “Consideration”). Upon closing of the Merger, existing shareholders of Volatus and Drone Delivery Canada will each own approximately 50% of the combined company (based on the current issued and outstanding shares of each of the companies). Strategic Rationale To date, Drone Delivery Canada has invested $40 Million into building strong, competitive drone cargo solutions that are now ready to go to market. By focusing on drone services, training, and equipment sales, Volatus is well-positioned to leverage these technologies and bring them to market. As regulations begin to enable the commercialization of drone cargo and remote drone operations, Volatus has been planning to commercialize its efforts in Advanced Air Mobility, adding to its goto-market strategy. Without technology such as Drone Delivery Canada’s remote operations centre; Flyte management software; DroneSpot infrastructure; and cargo-focused, commercialized aircraft, the path to competitively enter the Advanced Air Mobility market would require significant research and development (“R&D”) investment for any drone-based services company. The combined company, with its shared decades of technology and aviation experience as well as strong financial and operating metrics, is expected to have a leading presence globally as a diversified technology and service leader to drive both short- and long-term growth opportunities in existing and new markets. Further, it is expected that the combined company will be able to achieve material cost synergies to support near-term profitability and enhance its margin profile as its revenue profile continues to grow. Steve Magirias, Chief Executive Officer of Drone Delivery Canada, commented, “Drone Delivery Canada has been searching for the right partner to join us on our growth journey and we are confident that Volatus is a great fit, from a management vision point of view, industry know-how, and experience. We were initially attracted to Volatus’ strong reputation in the industry, admirable fiscal management through a challenging capital markets environment, and vision towards generating diversified lines of revenue.” Ian McDougall, Chair of Volatus board of directors, commented, “We are thrilled to announce this transformative merger with Drone Delivery Canada. Merging with Drone Delivery Canada will enhance our ability to offer cutting edge technology and services to our clients and help position the combined company as a global leader. Volatus sees a tremendous opportunity to commercialize Drone Delivery Canada’s advanced technologies, through our network of partners, Fortune 500, international mining, oil and gas, and utilities clients, further positioning the combined company as a global leader in drone technologies and services.” Glen Lynch, Chief Executive Officer, President and Director of Volatus, commented, “We believe that the strategic impact will be significant right out of the gate, and allow us to drive innovative technology advancements and offer our clients industry leading technology and service.”