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VOLATUS AEROSPACE CORP. (:VOL) Volatus Aerospace to Expand into US Oil and Gas Pipeline Surveillance Market

Transparency directive : regulatory news

08/09/2023 18:00

Initial Contract to Add Additional Surveillance Revenue of Up to $4M in 2024

TORONTO, ON / ACCESSWIRE / September 8, 2023 / Volatus Aerospace Corp. (TSXV:VOL)(OTCQB:VLTTF) ("Volatus" or "the Company")is proud to announce expansion into the US of its oil and gas pipeline surveillance operations, signing an initial contract with a leading energy company headquartered in the US set to launch in October 2023.

A leading provider of aerial intelligence, Volatus has an established track record in the oil and gas industry in Canada, providing services since 2013 through its subsidiaries, Canadian Air National and Synergy Aviation. The Company has flown over one million kilometers of pipeline right of way annually from Kitimat, British Columbia to Ottawa, Ontario.

"Our experience and expertise put us in a strong position to capture a market opportunity that is expected to grow to US$1.1B by 2033," said Glen Lynch, CEO of Volatus Aerospace, noting that Volatus expects to grow to an annualized revenue of up to CAD $4 million in 2024 with EBITDA (Earning Before Interest, Tax, Depreciation, and Amortization) margin of 10%, in line with our past performance from this services segment in Canada.

According to the US Chamber of Commerce Global Energy Institute , the United States has approximately 4.2 million km of oil and gas pipeline, almost 5X the size of Canada, as reported by the Canadian Association of Petroleum Producers. of oil and gas pipeline, almost 5X the size of Canada, as reported by the Canadian Association of Petroleum Producers.

Energy companies and pipeline operators use aerial inspection services to ensure that their infrastructure is safe and in compliance with regulations. Piloted aircraft and long-endurance drones are used to monitor pipeline right of way for signs of damage, leaks, gas emissions, or potential threats such as unauthorized machinery or construction close to the pipeline. The frequency of aerial inspection is highly regulated and range from daily, quarterly and annually depending on the size of the pipeline and its contents.

The Company has competitive advantage through its proprietary software - Aerial Information Reporting System (AIRS3); partnerships with advanced sensor and AI companies; and the ability to offer drone aerial intelligence to supplement or replace piloted aircraft, thereby reducing risk to human life, financial costs, environmental impacts, and disruption to wildlife.

About Volatus Aerospace:

Volatus Aerospace Corp. is a leading provider of integrated drone solutions throughout North America and growing into Latin America and globally. Volatus serves civil, public safety, and defense markets with imaging and inspection, security and surveillance, equipment sales and support, training, as well as R&D, design, and manufacturing. Through our subsidiary, Volatus Aviation, we are introducing green and innovative drone solutions to supplement and replace traditional aircraft and helicopters for long-linear inspections such as pipeline, energy, rail, and cargo services. Volatus is committed to carbon neutrality; the fostering of a safe, equitable and inclusive workplace; and responsible governance.

Forward-Looking Information

This news release contains statements that constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the anticipated benefits of, and estimated revenue to be generated by, the master service agreement; (ii) the business plans and expectations of the Company; and (iii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs of management as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company's current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the anticipated benefits and revenues of the master service agreement to the Company; the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; meeting the continued listing requirements of the TSXV; and including, but not limited to, those factors set forth in the Company's Annual Information Form under the section "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

Non-IFRS Measures and Other Financial Measures

This news release contains references to EBITDA margin, which are not defined under IFRS. Management believes the presentation of these metrics gives useful information to investors and shareholders, as they provide increased transparency and insight into the performance of the Company. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Readers should not place undue reliance on non-IFRS measures and should instead view them in conjunction with the most comparable IFRS financial measures

EBITDA. The Company defines EBITDA as IFRS net loss excluding interest expense, depreciation and amortization expense. EBITDA should not be construed as alternatives to comprehensive loss or income determined in accordance with IFRS. EBITDA does not have any standardized meaning under IFRS and, therefore, may not be comparable to similar measures presented by other issuers. The Company believes that EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

TSXV:VOL

Contact Details

Rob Walker
COO, Volatus Aerospace
+1 833-865-2887, ext 92003
Rob.Walker@volatusaerospace.com

SOURCE: Volatus Aerospace Corp.



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