Deveron UAS (DVR.CN) specializes in yield optimization for agriculture through the use of drones to collect and analyze data.
Drones in the agricultural sector has been an emerging trend over the past few years. An article in the MIT Technology Review by Michal Mazur of PwC outlines six ways drones are used in agriculture. The full PwC report can be found here.
DVR.CN works with enterprise clients but has a nimble operation. It hires licensed pilots to fly its fleet of drones and can scale up easily leasing additional ones on a as per needed basis, The company is currently building a flexible network across Canada and the US. In 2016, DVR.CN completed over 500 commercial flights and as of end year end (December 31, 2016) reported a loss of $521K which we consider nominal.
In the last six months, DVR.CN has had on some notable milestones. It divested from an investment in Boreal Agrominerals Inc. representing $960,000 to be received in next calendar year. In addition, the company completed private placements for over $2M. DVR.CN also signed Thompson Ltd as a client adding to its list of large agricultural enterprise (South West AG Partners Inc. and Bonduelle North America).
The company also started it's data collection flying season in May 2017.
As depicted in the chart above. DVR.CN has been trading between $0.30-$0.35 to $0.55 cents. This is interesting, as it is in line with the private placement share issues at $0.35 cents with warrants at .50 cents. Hence, we consider the accumulation of shares below $0.35 as sensible.
We believe that the company is a strategic asset. It's the only company of this kind trading on the Canadian markets that we know of. It also has the advantage of being a first mover in a large addressable market. DVR.CN is currently trading on the Canadian Stock Exchange (CSE).
If you're interested in the value proposition, we encourage you to investigate further.
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