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Drone Stocks 2020: Aiming High for Market Dominance - (CSE: DFLY) (OTCQB: DFLYF) (TSXV: FLT) (NASDAQ: MSFT) (NYSE: UPS) (NYSE: CVS)

 

Point Roberts, WA and Delta, BC - January 16, 2020 (Investorideas.com Newswire) 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.

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."

Draganfly Tango2
Draganfly Tango2

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