Volatus Aerospace Corp. (TSXV: VOL) (OTCQB: VLTTF) (“Volatus” or “the Company”) is pleased to announce that it has finalized the arms-length acquisition of New York based Empire Drone Company LLC. The acquisition, first announced November 28^th, 2022, provides Volatus with expanded distribution for drone technologies in the American Market and a corresponding increase in gross margin performance for all US sales.

“The addition of this company adds approximately $2.3M in trailing proforma revenue with an estimated 7% proforma EBITDA,” said Abhinav Singhvi, Chief Financial Officer for Volatus Aerospace. “The ability to support our US sales with domestic inventory and support is also expected to improve general gross margin, inventory turnover, and make our logistics management more efficient.”

Under the terms of the agreement, Volatus will purchase 100% of the company for a cash consideration USD$300,000 on Closing; (ii) issuance of 721,538 common shares at a deemed price of CDN$0.65 per common share on closing; and (iii) subject to certain revenue milestones 12 months after closing, issue up to an additional 721,538 common shares at a deemed floor price of CDN$0.65 per common share or 30 days VWAP on first anniversary from closing, whichever is higher.

Volatus Aerospace distributes products and services in Canada under the Volatus Aerospace, OmniView Tech, MVT Geo-solutions, Canadian Air National, and Synergy Aviation brands; in the USA under the Volatus Aerospace USA, ConnexiCore, and Empire Drone Brands; in South America under the Volatus Aerospace LATAM brands; and in European Markets under the Volatus Aerospace UK, and iRed Remote Sensing brands.

*Non-IFRS measure. Earnings before interest, taxes, depreciation and amortization (“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 defines EBITDA as IFRS net loss excluding interest expense, depreciation and amortization expense. 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.