Dallas, Texas – April 30, 2021- Astro Aerospace Ltd. (OTCQB: ASDN) (“Astro” or the “Company”), a developer of eVTOL aerial vehicles and drones, and Horizon Aircraft Inc. (“Horizon”), a developer of advanced eVTOLs, have entered into an agreement under which Astro will acquire privately held Horizon for five million common shares of Astro stock, the material terms of which are disclosed in the Company’s related 8-K filing. The transaction was unanimously approved by the respective Boards of Directors. The acquisition will broaden Astro’s capabilities, and become a leading eVTOL platform while continuing to invest and innovate. The Company’s acquisition of Horizon is expected to close in approximately ten days, subject to customary closing conditions. Upon closing the transaction, the CEO and Co-Founder of Horizon, Brandon Robinson, will be appointed as President of Astro and will sit on the Board of Directors. Jason O’Neill, Horizon’s Chief Operating Officer, will be appointed Executive Vice President of Astro.
Astro’s existing Alta and Elroy programs, combined with Horizon’s highly accomplished team of engineering and design talent, is expected to better position the Company to pursue its goal of commercialization. This approach will emphasize existing technology and elegant design to become a leader in the eVTOL market. The new funding provided by Astro will enable Horizon to accelerate development of its Cavorite X5 eVTOL advanced prototype. The Company believes this new aerospace technology offers significant advantages over current conventional aircraft including lower operating costs, a reduced noise footprint, increased safety and lower carbon emissions.
“Astro and Horizon, two organizations focused on developing innovative air mobility solutions, is a very exciting and promising combination. Our aligned business model, enhanced by the complementary expertise and capabilities of the founder-led Horizon team, creates significant opportunities for accelerated growth while simultaneously delivering value to our shareholders,” said Astro CEO Bruce Bent.
Horizon Co-Founder and CEO Brandon Robinson stated, “The Horizon family has found a great home in Astro and will continue operating with its distinct culture: excellence in product development and a deep passion for aviation. Horizon and Astro share in the mission of being at the forefront of eVTOL design and together we will be a more attractive and exciting company for our employees, our partners, and our investors.”
Horizon co-founders Brandon and Brian Robinson have applied their excellence in Mechanical Engineering to change the way we approach travel. Brandon Robinson is a Mechanical Engineer, a CF-18 Fighter Pilot Top Gun graduate, and holds an MBA with more than $400 million in project management experience. Horizon’s Chief Engineer, Brian Robinson (Brandon’s father) is also a Mechanical Engineer, beginning his innovation journey long before Horizon’s existence. Building aircraft from the age of 14, Brian’s previous aerospace engineering company achieved much success as it developed numerous first-of-its-kind innovations. This eventually led to designing a revolutionary new eVTOL prototype, making Horizon a pioneer in the market.
The Horizon 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 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 exactly like a normal aircraft.
Strategic Benefits of the Transaction:
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 place 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 prototypical Cavorite X5 aircraft, the ability of the Company to commence production of the Cavorite X5, the viability of the Covorite 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 prototypical 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.