ParaZero has executed a Letter of Intent (LOI) with Delta Drone South Africa (Delta) to acquire the business of Delta.
Delta is a wholly owned subsidiary of Delta Drone SA (Delta Group), a French incorporated limited liability company that is engaged as a leading international player in the field of civilian drones for professional use.
The companies said that they embarked on the proposed transaction because of the synergies that exist between each of the existing operated businesses which include the identified opportunity to combine those businesses and expand the combined business into new markets.
The opportunity to expand ParaZero’s activities into South Africa and gain new strategic customers everywhere in the world where Delta Group exists was also outlined, along with the opportunity to expand Delta’s mine surveys activities into Australia and gain new strategic customers within the mining business.
Crucial to executing a binding agreement with Delta will be the immediate ability of ParaZero to raise additional funds via the execution of a convertible note to support ParaZero through the relisting process.
ParaZero will update the market if and when a binding agreement has been executed.
Commenting on the move, ParaZero’s CEO, Eden Attias, said: “ParaZero is excited about the potential for the acquisition to strengthen the short, medium and longer term prospects for the company. Delta Drone South Africa, under its Rocketmine brand, generated revenues of circa US$2.5 million in 2019, which will bolster ParaZero’s bottom line and underpin R&D activities.”
Attias continued: “The use of drones in mining is going to be a significant growth area, we are creating a roadmap for R&D so that we can quickly capitalise on our competitive advantages in this rapidly expanding market.”