Astro expands its offerings in the fast-growing eVTOL Market expected to hit $1 Trillion by 2040(1)
Dallas, Texas--(Newsfile Corp. - June 2, 2021) - Astro Aerospace Ltd. (OTCQB: ASDN) ("Astro" or the "Company"), a developer of eVTOL aerial vehicles and drones, announced today that the acquisition agreement (the "Acquisition") with Horizon Aircraft Inc. ("Horizon"), a privately held developer of advanced eVTOLs, has closed. The Acquisition was completed for common shares of Astro stock, the material terms of which are disclosed in the Company's related 8-K filing.
Bruce Bent is pleased to announce that Patricia Trompeter, currently a member of Astro's Board of Directors has agreed to take on the role of Chief Executive Officer. Ms. Trompeter has had a love for aviation since wanting to be an astronaut in grade school and will bring that passion to advocating for the Astro business. Ms. Trompeter brings more than 16 years of experience in mergers and acquisitions and 15 years in financial management experience to the position. After graduating from Marquette University's Business Administration program with a major in Finance and Economics, Ms. Trompeter spent a large portion of her career holding a variety of executive positions at GE Capital including CFO, Controller, Operations Leader, Quality Leader, and Mergers & Acquisitions. During her career at GE Capital, Ms. Trompeter participated in over $17 billion in acquisitions and transactions, earning her a reputation of professional excellence. After leaving GE Capital, Ms. Trompeter focused on non-profit ventures and family before co-founding an independent investment and advisory firm growing innovative technologies in emerging markets.
Mr. Bent will assume the role of Executive Chairman to assist in implementing the Astro business plan developed over the past two years.
The Company further announces that Horizon co-founder and CEO Brandon Robinson has been appointed President of Astro Aerospace Ltd. Mr. Robinson holds a Mechanical Engineering degree from the Royal Military College of Canada, is a CF-18 Fighter Pilot Top Gun graduate, has an MBA from Royal Roads University, and has led more than $400 million in complex engineering projects.
The Acquisition of Horizon Aircraft by Astro Aerospace will provide a complete product offering across both commercial and industrial applications. Astro will now have three eVTOL models under development - Alta, Elroy and the Cavorite X5. Astro's offerings position the Company as one of few businesses in the eVTOL space to offer both full electric and hybrid aircraft options. In addition, the Astro product line includes single passenger, piloted multiple passenger, and cargo aircraft designs.
"This completed Acquisition is a huge opportunity for both companies' eVTOL projects to progress exponentially. Astro's respected industry reputation and available funding, together with Horizon's engineering and design talent, will complement Astro's existing product lines, ALTA and ELROY, and will accelerate the development of Horizon's revolutionary eVTOL, the Cavorite X5," said Mr. Robinson.
Through Mr. Robinson's leadership, Horizon acquired private funding to build the Cavorite X5 eVTOL prototype which will now be continued by Astro through a committed investment. The 1:2 prototype will be built at Horizon's production facility in Lindsay, Ontario, and is expected to be completed by Q1 2022. A full-scale, certified prototype of the Cavorite X5 is expected by the end of 2024.
The Cavorite X5 is the world's first eVTOL to fly the majority of its mission as a normal aircraft. The hybrid-electric aircraft carries four passengers plus one pilot, and is built for operational realities such as inclement weather, traffic avoidance and low-time pilots. The Cavorite X5 travels up to 500 kilometers at a speed of 450 kilometers per hour, offering significant advantages over current conventional aircraft including increased safety, lower operating costs, a reduced noise footprint, and lower carbon emissions. More than 200 test flights of an existing sub-scale prototype have been successfully completed.
"The completed Acquisition will propel the development of the Cavorite X5 forward," said Ms. Trompeter. "It will strengthen Astro's ability to pursue commercialization and allow the visions of both Astro and Horizon to align, creating a powerhouse in the eVTOL market. Bruce has been an industry pioneer and driving force behind Astro's success, which has progressed the Company's vision into tangible milestones. I am excited to be working with Mr. Robinson, who possesses the ability to develop aerial solutions with the perfect balance of analytical and creative. Their combined expertise will help me guide Astro through this transformative chapter as the Company merges product lines, implements Astro's strategic vision and begins the Nasdaq uplist process."
1According to Morgan Stanley.
The Cavorite X5 eVTOL
Horizon has successfully completed more than 200 test flights of its sub-scale prototype Cavorite X5, a five-seat hybrid-electric eVTOL. The primary objective for the sub-scale eVTOL prototype's test flights is to verify aerodynamics, control systems and transitional flight. For vertical flight, the wing surfaces retract to open its ducted fans before closing again after it achieves a minimum forward speed, maximizing the craft's aerodynamic efficiency while lowering operational costs.
The full-scale Cavorite X5, which is expected to travel up to an estimated 450 km/h with a 500-kilometre range, is designed for safety, reduced hydrocarbon emissions, operation in poor weather, and ease of flying for low-time pilots. The aircraft targets Urban Air Mobility but also long-range Regional Air Mobility, currently an underserved portion of the market. The patented fan-in-wing technology allows the Cavorite X5 to be the world's first eVTOL that can fly the majority of its mission configured exactly like a normal aircraft.
Strategic Benefits of the Transaction:
Horizon management to remain in key leadership roles
Greater access to capital and industry experience to accelerate innovation
Provides path to production and commercialization
About Horizon Aircraft Inc.
Horizon Aircraft is an advanced aerospace engineering company that has developed the world's first eVTOL that can fly most of its mission exactly like a normal aircraft while offering industry-leading speed, range, and operational utility. Our unique designs put the mission first and prioritize safety, performance, and utility. Our Cavorite X5 eVTOL is designed to enter the market quickly and service a broad spectrum of early use cases.
Visit www.horizonaircraft.com for more information.
About Astro Aerospace
Astro Aerospace is the developer of an advanced, autonomous, short haul, eVTOL (Electric Vertical Take-off and Landing) aerial vehicles. Our mission is to make self-flying unmanned and manned vehicles available to anyone, at any time, from anywhere, bringing a new and exciting aircraft into a mainstream mode of transportation.
Our vision is "Flight Made Easy".
Visit www.flyastro.com for more information.
Certain information in this news release constitutes "forward-looking information" under applicable securities laws. "Forward-looking information" is defined as disclosure regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action and includes future-oriented financial information with respect to prospective financial performance, financial position or cash flows that is presented as a forecast or a projection.
Forward-looking statements are often but not always, identified by the use of such terms as "may," "might," "will," "will likely result," "would," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or the negative and/or inverse of such terms or other similar expressions.
Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the filing of a notice under the Investments Canada Act, the ability of the Company to receive regulatory approval by the relevant governmental agencies, including the Director of Investments under the Investment Canada Act, the ability of the parties to close the transaction on the terms mentioned within this news release, the Company's ability to integrate Horizon's business as planned, the commercial viability of Horizon's prototype Cavorite X5 aircraft, the ability of the Company to commence production of the Cavorite X5, the viability of the Cavorite X5's proprietary fan-in-wing technology, the expected performance of the Cavorite X5, the continuance of current industry trends, the Company's anticipated revenue, estimated margins, the effect of the transaction on the Company and its strategy going forward, the Company's ability to obtain regulatory approval with respect to the Company's products, in particular, the prototype Cavorite X5 by the relevant governmental authorities, including the U.S. Federal Aviation Authority (FAA), and expectations with respect to future production costs of the Company's products. While Astro and Horizon consider these assumptions to be reasonable, based on information currently available, they may prove to be incorrect.
Readers are cautioned not to place undue reliance on forward-looking statements.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company's reliance on one key customer for a substantial percentage of its revenue, the Company's ability to consummate any proposed financing, acquisition or transaction, the timing of the closing of such proposed event, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all, or that the closing of any proposed financing, acquisition or transaction will not occur or whether any such event will enhance shareholder value, the Company's ability to continue as a going concern, the Company's ability to attract, maintain and increase the number of its customers, the Company's ability to maintain compliance with certain financial and other covenants, the effects of the global Covid-19 pandemic, changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company's subsidiaries; and other risks, uncertainties and factors. These forward-looking statements speak only as of the date hereof and the Company disclaims any obligations to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Astro and Horizon disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. This news release has been approved by the board of directors of each of Astro and Horizon.
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