Drone Delivery Canada Corp (CVE:FLT) Visibility Enhanced Following Wing’s U.S. Go-Ahead

It’s been a downward grind—characterized by lower highs and lower lows—for Drone Delivery Canada Corp (CVE:FLT) (OTCMKTS:TAKOF) over the past sixteen months. However, the stock is receiving a bid today on the heels of some important news down south, which, if nothing else, should enhance visibility for the sector going forward.

Before market, Google sister company Wing announced that commercial drone deliveries are coming to the U.S. this year; specifically, to two New River Valley communities in Virginia. The drones have a six-mile range, so the staging area – known as the nest – will determine who is able to signup for deliveries. This marks the first time that drones will receive Federal Aviation Administration (FAA) clearance for residential delivery. It’s an important awareness milestone for the sector.

Drone Delivery Canada $FLT could get traction today. Reason: Google X project Wing received FAA clearance for RESIDENTIAL delivery in 2 rural VA townships. Wing now has same certifications that smaller airlines receive. Long cycle play getting shorter?https://t.co/17QNsVxEST

— Benjamin A. Smith (@BenjaminA_Smith) April 23, 2019

Cleared for takeoff #uas #drones #ProjectWing pic.twitter.com/y6R4bFEEzF

— Jacob Demmitt (@jDemmitt) August 7, 2018

Wing has previously received go-ahead for commercial drone deliveries in Australia, where regulators warmed to the concept sooner than in the U.S. Wing has partnered with an assortment of retail businesses to provide services in rural locations. Wing will also “begin its first trial in Europe in the spring, delivering to homes in Helsinki, Finland,” according to company representative in an email response to NPR.

Although today’s Google X project success provide catalyzing visibility to the sector, Drone Delivery Canada is actually ahead of the curve.

In February 2018, FLT announced that Transport Canada granted a compliant UAV Operator Special Flight Operations Certificate (SFOC) to the company. A Compliant ‘UAS’ (Unmanned Aircraft System) was the first of three regulatory components to the Transport Canada Compliant UAS Operator program—and mandatory for a Compliant UAS Operator SFOC—obtained and announced in December 2017.

In other words, Wing has is just reached the Canadian-equivalent stage that Drone Delivery Canada originally pioneered early last year.

Although it will take several months for Wing pilot to commence, FLT should begin commercial operations much sooner. The company has already signed a $2.5 million commercial agreement with Moose Cree First Nation to deploy FLT’s drone delivery platform using the compliant Sparrow aircraft capable of a 5 kg payloads. Revenues should be procured in late calendar Q2 2019 once Federal funding is received by the signatory. Up until this point, Drone Delivery Canada has been devoid of revenues.

So we’re going to leave the coverage here for now. While Google X’s Wing success is nothing new to investors following the FLT story, it does provide infinite more visibility and awareness to the sector. I suspect today’s news could catalyze a whole legion of investors—myself included—who shied away due to the long-cycle nature of the industry.

Apparently, the future of residential and commercial drone package delivery is closer than most realize—even if it hasn’t penetrated main population centers just yet.

At publishing time, FLT is higher by $0.05 to $ 1.29 (4.03%) on modest volume.

Original article: Drone Delivery Canada Corp (CVE:FLT) Visibility Enhanced Following Wing’s U.S. Go-Ahead

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