Toronto, Ontario - Deveron UAS Corp. (CSE: DVR) (“Deveron” or the “Company”), is pleased to
announce that it has signed a definitive agreement (the “Agreement”) to acquire all the issued
and outstanding shares of Veritas Farm Management Inc. (“Veritas”) pursuant to an agreement
dated August 27, 2018 between Deveron and South West Ag Inc. (the “Vendor”). The
combination of the resulting entity will create a leading data analytics company providing North
American farmers with access to data driven insights as well as access to Deveron’sleading drone
data network.
Veritas is a data analytics company which provides recurring data consulting and precision
agriculture services to large enterprises and large-scale farmers. Veritas had unaudited reported
revenue of $1,140,845 in 2017, $1,051,262 in 2016 and $779,797 in 2015. The acquisition is
expected to close in Q3 2018.
“Data, analytics and insights have always been the driving factors of our vision in building
Deveron as a leading drone data company in North America,” commented Deveron’s President
& CEO, David MacMillan. “Veritas has built an insights business deeply rooted in understanding
the needs of farmers and what can be implemented on the farm today. We look forward to
growing our mutual customer base by providing complementary product offerings that are all
rooted in increasing yields and reducing costs.”
“Veritas was born out of the need for better management tools for Ontario farmers. Drone
imagery has become one of the tools that allows for better management decisions. This
partnership will enable Veritas to continue to develop and deliver measurable solutions to our
current and growing geographical footprint of customers, in a way that is easy for farmers to
implement. Veritas Farm Management has been able to position itself within the Ontario market
in a way that is both strategic and unique. This new relationship with Deveron will only enhance
our ability to execute for our customers.” says Aaron Breimer, Business Manager of Veritas Farm
Management Inc.
The purchase price for the acquisition of Veritas is comprised of a cash payment of $320,000 and
3,750,000 Units (“Units”) of the Company, issued to the shareholders of South West Ag Inc. Each
Unit consists of one common share of the Company (each, a “Common Share”) and one-quarter
of a Common Share purchase warrant at a deemed price of $0.18. Each whole warrant shall
entitle the holder to acquire a Common Share at an exercise price of $0.50 per Common Share
for a period of two (2) years from the closing of the acquisition. Under the terms of the
agreement, the Units will be released from escrow in five equal tranches of 750,000 Units, every
three (3) months, with the initial release occurring on the sixth month following the closing of
the acquisition, and the final tranche being released on the eighteenth month after closing. On
completion of the transaction, South West Ag Inc. will own 9.9% of the Company shares.
All securities issued in connection with the acquisition are subject to a hold period of four months
plus a day from the date of issuance and the resale rules of applicable securities legislation.
Source : Deveronuas