American technology company Workhorse has announced its intention to spin off its aviation division but will withhold the assets related to its flagship HorseFly drone.
The unit, which includes its SureFly personal helicopter, into a separate publicly traded company named SureFly, Inc.
SureFly will encompass all SureFly aerial technology and expertise, including property related to the personal helicopter, but it will not own the assets related to the package express-related HorseFly drone, which will be retained by Workhorse.
Workhorse expects to grant SureFly a royalty-free, perpetual license to utilise the HorseFly drone except with respect to deliveries implemented from a ground-based vehicle focused on package express.
At the time of the spin off, Workhorse expects to enter into a transition services agreement with SureFly to provide certain engineering and accounting services not anticipated to be provided immediately by employees of SureFly, Inc.
CEO Steve Burns said: “SureFly has been one of the most exciting products we’ve ever developed and reflects the best representation of the versatility of our innovative platform technologies. And while this new business will likely command a meaningful valuation, we believe the decision to spin off SureFly into a separate entity will better facilitate the long-term growth of both companies.”
Workhorse Group this week received an ‘Experimental Airworthiness Certificate’ from the Federal Aviation Administration (FAA) to conduct test flights of its SureFly electric hybrid helicopter at CES Show in Las Vegas.
SureFly is the world’s first electric hybrid helicopter. It features a drone-like octocopter design, a two-person, 400-pound payload capacity and a range of approximately 70 miles.