Drone Aviation Holding Corp. a developer of specialized, tethered aerial monitoring and communications platforms serving national defense and homeland security customers, announced today that it has closed on a merger with ComSovereign Corp, a U.S.-based consortium of 5G telecommunications radio, silicon photonics and power systems designed for the next generation of global networks.
The newly merged company will focus on supplying ComSovereign’s existing global wireless carrier customer base with new infrastructure technology including industry leading carrier backhaul capability and 5G/NR connectivity for fixed and mobile aerial applications. As a result of the transaction, Drone Aviation has postponed FINRA’s previously approved reverse stock split of its shares due to the merger and the change in the board structure. The name of the Company will be changed from Drone Aviation Holding Corp. to ComSovereign Holding Corp. as soon as possible in accordance with State, FINRA and SEC notice requirements, currently expected by December 15th, 2019.
As part of the merger, the Company has enacted a number of management and board personnel changes including the resignation of its CEO and Director, Dan Erdberg, and the appointment of Dan Hodges as Chairman and CEO. Drone Aviation’s former Chairman, David Aguilar, will remain as a Director. The members of the Board of Directors of the combined Company include leaders from the government, technology, accounting and finance industries.
Newly appointed Chairman and CEO of Drone Aviation Corp., Dan Hodges, stated, “Through this unique and synergistic business combination, ComSovereign gains an immediate capability, enabling us to emplace entire LTE networks, from small private networks to city-scale systems, in a matter of days instead of years. Integration of our newly validated, disruptive communications technologies also enable superior performance and reliability where it previously never existed.”
Former CEO of Drone Aviation Dan Erdberg stated, “This merger represents a significant milestone in our strategic plan for Drone Aviation as we expand into the 5G wireless communications market, creating valuable new opportunities to leverage our patented tethered drone and aerostat technologies to create flying cellular towers for government and commercial customers around the world.”
Mr. Hodges concluded, “To our shareholders, I want to be clear that our responsibility, commitment and focus are on executing a methodical, disciplined approach to delivering revenue and earnings over the long-term. We intend to leverage our installed base of tier-one global customers and the further expansion of our portfolio as we capitalize on the potential of our technologies. Our world-class management teams and Board of Directors share a dedication to long-term value creation to benefit our current and future stakeholders.”
ThinkEquity, a division of Fordham Financial Management, Inc., acted as financial advisor to ComSovereign Corp.