Drone Aviation Holding Corporation, a developer of specialized, tethered aerial monitoring and communications platforms serving national defense and homeland security customers, has announced their merger with ComSovereign Corporation, the 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. Through this unique and synergistic business combination, ComSovereign gains an immediate capability, enabling Drone Aviation to emplace entire LTE networks, from small private networks to city-scale systems, in a matter of days instead of years. Integration of Drone Aviation’s newly validated, disruptive communications technologies also enables superior performance and reliability where it previously never existed.
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 Corporation to ComSovereign Holding Corporation 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.
This merger represents a significant milestone in Drone Aviation’s strategic plan as it’s expanding into the 5G wireless communications market, creating valuable new opportunities to leverage its patented tethered drone and aerostat technologies to create flying cellular towers for government and commercial customers around the world. The company intends to leverage its installed base of tier-one global customers and the further expansion of the portfolio as it is capitalizing on the potential of its technologies. ThinkEquity, a division of Fordham Financial Management, Inc., acted as a financial advisor to ComSovereign Corporation.
