Bulgarian unmanned aerial systems developer, Dronamics, plans to raise up to BGN 5.3m via an IPO of its wholly owned subsidiary – the special purpose company Dronamics Capital. The IPO will take place on the BEAM growth market segment on the Bulgarian Stock Exchange (BSE) on December 2nd, 2021.
Dronamics Capital will offer up to 5,334,081 preferred, newly issued Class B shares with an issue price of BGN 1.10 per share. Each potential investor can subscribe for at least 1 share up to the entire offered share volume. The IPO will be considered successful if at least 50% (2.7m) of the offered shares are subscribed and paid for. The end of the public offering will be on December, 7th.
In case the whole issue is subscribed, Dronamics Capital will raise its share capital to BGN 5.9m, distributed into one preferred Class A share (nominal value of BGN 50k) and 5,334,081 preferred Class B shares (nominal value of BGN 1.00 each). The owner of the Class A preferred share is Dronamics Global Limited, UK, an unmanned aerial systems for cargo delivery startup. Dronamics Capital EAD is a specially created company in order to provide investors with access to the latter and 90% of the proceeds from the IPO will be used by Dronamics Capital to fund Dronamics Global Limited via the purchase of SAFE (Simple Agreement for Future Equity) note. The latter note will be convertible into Dronamics Global Limited capital stock upon certain equity financing or liquidity event at a valuation cap of EUR 125m and a discount rate of 20%.
Dronamics Global Limited is developing a small, unmanned and fuel efficient aircraft “The Black Swan” that has the capacity to carry 350 kg of cargo load and can cover a distance of up to 2 500 km. In 2021, Dronamics went into agreements with DHL Deutsche Post to start commercial flights of the same-day drone cargo services and Hellmann Worldwide Logistics to offer cross-border delivery of vital goods. Dronamics expects to receive cargo drone airline license and make the first customer flight during the next 12 months. It estimates it has 3 years technical, cost and executional advantage to competitors such Volocopter, Lilium, Zipline and others.
Please note that Dronamics exists since 2014 and so far has attracted EUR 850k equity financing and EUR 5.2m SAFE instruments with valuation caps in the range of EUR 4.5m – 125m and discount rates in the range of 20% – 25%. The Bulgarian venture capital, Eleven Capital [11C], owns 12.12% in the UK company and has provided an additional financing of EUR 250k of convertible loans.