June 4, 2019 Drone Delivery Canada Announces Commercial Agreement with Air Canada
TORONTO, ONTARIO June 4, 2019 Drone Delivery Canada Corp. (TSXV: FLT, OTC: TAKOF) (the Company or DDC) is pleased to announce that it has entered into an agreement (the Agreement) with Air Canada (TSX:AC) (AC) effective May 29, 2019 whereby Air Canada Cargo will market and sell DDCs drone delivery services in Canada using Air Canada Cargos marketing and sales platforms and resources.
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. DDCs 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 DDCs drone delivery services on the agreed routes, leveraging Air Canada Cargos 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 Cargos brand presence and their established sales network and marketing reach. DDC will benefit from Air Canadas Cargos expertise and ability to promote and sell DDC services through Air Canada Cargos industry leading marketing and sales technology channels in Canada, which will support our efforts to establish DDC as Canadas 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 todays 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.
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