Deveron UAS Corp. (DVR.CN) specializes in yield optimization for agriculture by using drones to collect and analyze data. We initiated official coverage on June 2017 with notes on December 2017 and April 2017. Here are the recent releases issued.
Apr. 16 - Insider Buy: CEO buys 10K at $0.33 cents.
May 2 - Completed integration (SOAR) with the John Deere Operations Center. SOAR gives John Deere users direct access to DVR.CN drone data order management platform. Users can Import field boundaries, order on-demand ultra-high-resolution drone imagery, receive processed and/or raw data to drive improved decision making during the growing season
Jun. 19 -Expands Drone Data Services to US Market. Access to Indiana, Iowa, Illinois, and North Dakota
July 16 - Awarded with National Special Flight Operations Certificate (SFOC). This SFOC provides approval to operate nine additional makes and models expanding DVR.CN UAV fleet, meeting common customer demands for increased operational flexibility.
Aug. 28 - Acquire Veritas Farm Management. Veritas had unaudited reported revenue of $1.1M (2017), $1.05M (2016), and $0.77M in 2015. The acquisition is expected to close in Q3 2018. The purchase price is $0.32M in cash and 3.75M shares, with a portion of warrant at $0.50 cents for two years.
In addition to completing the SOAR integration with John Deere, DVR.CN has expanded its fleet (SFOC) and territories served (Indiana, Iowa, Illinois and North Dakota). Despite these catalysts, the company has experienced a decline of valuation for the period of more than 33%.
However, the recent acquisition of Veritas Farm Management (a multi-service agency) is interesting as it is revenue generating entity. This will bode well as DVR.CN latest earnings (Q2 , as of June 30th) were soft. Revenue was ($0.12M) but a 60% increase from last year nonetheless. The company is also in a strong cash position ($3.3M) which is significantly higher than last year ($1.1M), thanks to the $2.86M financing from Gravitas.
There is no doubt that the competition in this space is ramping up with more drone vendors buzzing in the fields. While this pose a competitive threat, the recent purchase of Veritas Farm Management shows that the company is positioning itself closer to the ground.
Veritas is a direct channel for DVR.CN value added-services. This acquisition represent a shift in the way DVR.CN has approached the vertical to date. We will look for more of these type of acquisition in the future as they allow DVR.CN to build a network by leveraging direct access to farmers.
We'll keep an eye on DVR.CN as it is grazing down greener pasture.
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