Pursuant to the terms of the Agreement and subject to DDC obtaining required regulatory approvals, DDC will build and operate up to 150,000 drone delivery routes in Canada. These routes will include timetables, flight schedules, payload capacities, type of drones to be deployed, and payment terms. DDC's services will be marketed as a premium offering, and Air Canada Cargo has agreed that it shall not use or engage with any other drone delivery service providers.
Air Canada Cargo has agreed to sell, market and promote DDC's drone delivery services on the agreed routes, leveraging Air Canada Cargo's expertise in the cargo world, brand presence and sales network.
"This agreement greatly accelerates our commercial roll out in Canada", commented Tony Di Benedetto CEO of DDC. "Our drone delivery services will be extensively marketed as we work to establish operations across the country leveraging Air Canada Cargo's brand presence and their established sales network and marketing reach. DDC will benefit from Air Canada's Cargo's expertise and ability to promote and sell DDC services through Air Canada Cargo's industry leading marketing and sales technology channels in Canada, which will support our efforts to establish DDC as Canada's first national drone cargo solution. Next, DDC hopes to pursue even larger markets in the United States and Europe."
"Air Canada is pleased to partner with Drone Delivery Canada, a leading player in today's emerging drone industry. We believe drone technology has the potential to offer the cargo community cost-effective solutions to complex issues related to supply chain distribution in non-traditional markets, including remote communities in Canada. It is another way Air Canada Cargo is innovating and engaging with new technologies, such as artificial intelligence and digital technologies, which are transforming the cargo landscape," said Tim Strauss, Vice President, Cargo, at Air Canada.
Mr. Strauss is also an independent member of the advisory board of DDC.
The initial term of the Agreement is ten years from the effective date of May 29, 2019. The routes to which the Agreement applies shall be agreed by the parties and shall be subject to DDC obtaining required regulatory approvals. Once routes are approved by the applicable regulatory authorities, the particular terms of the routes, including payment terms to Drone, will be determined in the context of each applicable route and disclosed in subsequent press releases.
GMP Securities L.P. acted as financial advisor to DDC.
About Drone Delivery Canada Corp.
Drone Delivery Canada Corp. is a drone technology company focused on the design, development and implementation of its proprietary logistics software platform utilizing drones. The Company's platform will be used as Software as a Service (SaaS) for government and corporate organizations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice Regarding Forward Looking Information
Certain information set forth in this news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, and dependence upon regulatory approvals (both in Canada and internationally). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking information. The parties undertake no obligation to update forward-looking information except as otherwise may be required by applicable securities law.
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SOURCE Drone Delivery Canada
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| Company Name: Drone Delivery Canada
Tony Di Benedetto, Chief Executive Officer, Drone Delivery Canada Corp., Tel: (647) 476-2662 x5501, Email: Email Contact Richard Buzbuzian, Capital Markets, Drone Delivery Canada Corp., Tel: (647) 501-3290, Email: Email Contact Web: http://www.dronedeliverycanada.com Financial data for Drone Delivery Canada |
