Jacksonville-based Drone Aviation Holding Corp. announced Wednesday it merged with ComSovereign Corp., a holding company for businesses involved in telecommunications, silicon photonics and power systems.
The name of the merged company will be ComSovereign Holding Corp. and ComSovereign CEO Dan Hodges will be chief executive.
Drone Aviation CEO Dan Erdberg resigned as part of the merger.
According to a Securities and Exchange Commission filing, Drone Aviation issued stock to ComSovereign’s shareholders, giving the former ComSovereign stockholders 69% of all outstanding shares.
Drone Aviation issued 95 million new shares to those stockholders. The company’s stock closed at 82 cents a share Wednesday, before the deal was announced, which would put the total value of those shares at about $78 million.
Drone Aviation, which produces tethered aerial monitoring and communications platforms, reported revenue of $4.1 million and a net loss of $475,064 in the first nine months of this year.
“This merger represents a significant milestone in our strategic plan for Drone Aviation as we expand into the 5G wireless communications market, creating valuable new opportunities to leverage our patented tethered drone and aerostat technologies to create flying cellular towers for government and commercial customers around the world,” Erdberg said in a news release.
Drone Aviation listed 22 full-time and three part-time employees in a recent SEC filing. The company did not say what its plans are for its Jacksonville office or employees.