Landmark LOI Agreement Has Investors Buzzing Around This Micro Cap

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Tuesday, March 4, 2025

On a rough day in the markets, driven by new or increased tariffs on countries such as Canada, Mexico, and China, there were still some glimmers of hope in the news.

On such glimmer was the announcement by UAV Corp. (OTCPK: UMAV), a leader in unmanned aerial vehicle (UAV) and airship technology, that they have secured a Letter of Intent (LOI) dated February 27, 2025, valued up to approximately $420 million for a multi-system purchase of its DART 600 Series mid-altitude drone airships. This significant agreement, facilitated through UAV Corp.'s subsidiary Skyborne Technology, Inc., represents a major step forward in the company’s expansion and market positioning.

The LOI, signed with a consortium of undisclosed entities following a visit to Skyborne Technology’s manufacturing facilities in Gulf County, Florida, outlines the purchase of multiple DART 600 airships. These advanced, long-endurance airships feature hybrid fuel cell propulsion, detachable drone systems, and cutting-edge tethering technology, making them ideal for applications in agriculture, border security, disaster relief, communications, and surveillance.

Initial deliveries are scheduled to begin in 2026, with production ramping up at UAV Corp.’s Wewahitchka, FL facility. 

"This agreement is a testament to the groundbreaking capabilities of our DART Series airships and our ability to meet the growing global demand for advanced aerial solutions," said Michael Lawson, CEO of UAV Corp. "With additional contract negotiations in progress for deals potentially exceeding $1.5 billion, UAV Corp. is positioned for rapid growth in the expanding UAV market."

The global UAV market, valued at $36 billion in 2024, is projected to grow at a 16.5% compound annual growth rate (CAGR) through 2037, driven by increased demand for aerial surveillance, defense, and commercial applications.

While shares of UMAV initially spiked on the news, the stock succumbed to the overall market pains and was last trading down 9.12% at $0.0254 in mid-morning trading.

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