JACKSONVILLE, FL -- (Marketwired) -- 06/05/14 -- Drone Aviation Holding Corp., (formerly MacroSolve Inc.) (PINKSHEETS: DRNE) a Nevada corporation (the "Company"), announced today that it entered into a share exchange agreement on June 3, 2014 pursuant to which all of the capital stock of Drone Aviation Corp., a privately held Nevada corporation ("Drone Aviation"), were exchanged for shares of Common Stock and Series D Convertible Preferred Stock of the Company on a one-for-one basis (the "Share Exchange") causing Drone Aviation to become a wholly owned subsidiary of the Company.
During May 2014 Drone Aviation became an aerospace company principally focused on developing and producing tethered drones and tethered aerostats for military and commercial applications. Drone Aviation's flagship products the Blimp in a Box™ (BiB) and the Winch Aerostat Small Platform (WASP) acquired in the LTAS Acquisition, are currently utilized by various military and commercial customers as a safe, effective surveillance and communications system. In addition, Drone Aviation is leveraging its experience from military applications to develop specialized drones that utilize a unique tethering technology where all data, controls and endurance are built into the tether, thus permitting the drones to fly within FAA guidelines.
The Company's new management team includes Felicia Hess as its Chief Executive Officer and Dan Erdberg as its Chief Operating Officer and Kendall Carpenter remains the Company's Chief Financial Officer. The Company, now headquartered in Jacksonville, Florida, will add to its existing businesses principally involving development and monetization of patented technologies the drone business acquired through LTAS. As previously reported in the Company's SEC filings the Company has been principally focused on ventures related to intellectual property licensing and enforcement of its mobile app patent which on March 7, 2014 received an unfavorable ex parte reexamination office action rejecting all claims, which it intends to challenge.
Simultaneous with the closing of the Share Exchange, the Company sold 2.7 million units of its securities, consisting of one share of Series E Preferred Stock and one three year warrant to purchase one share of Common Stock at an exercise price of $1.00, in a private placement to accredited investors, at a price of $0.50 per unit, resulting in gross proceeds to the Company of $1,350,000.
The Company's Chief Executive Officer, Felicia Hess, said, "The completion of these transactions was a key piece in our strategic plan to penetrate the military and commercial aerostat and drone space. We believe tethered aerostats and drones are safe, lower cost yet effective systems, that comply with current FAA regulations, for various military and commercial applications. We expect the capital raised from this financing will assist us to expand our customer base and allow us to accelerate our research and development of our next generation tethered aerostats and drones."
The Company intends to use the net proceeds of the offering principally for sales and marketing, research and development, and general and administrative expenses.
About Drone Aviation Holding Corp.
Drone Aviation Holding Corp. designs and develops specialized tethered aerial surveillance and communications solutions to government and commercial customers. Drone systems are designed in-house utilizing proprietary technologies and processes that result in compact, rapidly deployable tethered aerostat solutions that have been proven to fulfill critical requirements by the military and law enforcement in the U.S. and around the world. For more information regarding Drone, please visit www.DroneAviationCorp.com, or view our reports and filings with the Securities and Exchange Commission on http://www.sec.gov, including the Risk Factors included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and in our Current Report on Form 8-K filed with the SEC on June 5, 2014, as well as our Quarterly Report for the quarter ended March 31, 2014 filed May 8, 2014 and our Current Report on Form 8-K filed with the SEC on May 5, 2014 related to the transactions.
Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include those regarding: the date our OTC market symbol will change, the safety or effectiveness for any specific application of any of our products, the use of any proceeds from our private placement, the potential of tethered aerostats or drones, the Company's ability to expand its customer base or accelerate our R&D program, our relationships with our customers and our ability to continue and/or expand such relationships, the suitability of the our products for any particular application, the ability of our products to satisfy customer demands or requirements or meet any specific challenges, the ability of our products to function in accordance with their design expectations, the capabilities, characteristics and advantages of, and costs related to our products and services, the further advancement, development or commercialization of any of our products, the ability of the Company to secure further business with new customers or grow revenues, and the ability of the Company to execute on its strategies or to accomplish any of its goals or objectives. The words "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
Contacts:
Drone Aviation Corp.
Kendall Carpenter
Phone: 918-932-2000
kcarpenter@droneaviationcorp.com
