AgEagle Aerial Systems, an aerial drone imagery collection and analytics company, has closed its merger transaction with EnerJex Resources, pursuant to which AgEagle becomes a wholly-owned subsidiary of EnerJex Resources, Inc.
EnerJex will be renamed AgEagle Aerial Systems and will begin trading on March 27th on NYSE American under the ticker symbol UAVS. In addition, on March 26, 2018, the company closed a private placement of its shares of Series C Convertible Preferred Stock to institutional investors raising gross proceeds of $4,000,000.
“The completion of this merger and subsequent financing is a significant milestone for our company,” commented Bret Chilcott, founder and CEO of AgEagle. “We can now aggressively execute on our vision of becoming a leading drone and data analytics company in PrecisionAg, while generating meaningful value for our shareholders. We plan to invest and grow the data analytics division of our business to provide farmers with actionable insights to help them generate healthier crops more efficiently.
AgEagle’s line of automated flying drones collect valuable information for farmers by flying over large fields of corn, soybeans, wheat and other types of crops, collecting thousands of ultra-high-resolution pictures using sophisticated near-infrared sensors (cameras). The images can be loaded to the cloud midflight through cellular connectivity and stitched together to form one large, near-infrared, aerial view. Unlike the human eye, algorithmic-based computer programs are able to determine the current health of the photographed crop by analyzing the amount of near-infrared light reflected from the plants. Healthy plants reflect more near-infrared light while unhealthy plants absorb the light. Using this high resolution, near-infrared image, a farmer or an agronomist is able to create a ‘prescription map’ that is then fed into the computers that guide large precision crop sprayers. As a result, chemicals, herbicides, pesticides and nutrients can be applied more precisely in the fields – saving money, increasing the amount of yield per acre, and improving the environmental impact of farming.
AgEagle’s board of directors includes company founder and CEO Bret Chilcott, a representative from stakeholder Raven Industries, Tom Gardner, a data analytics expert, and Grant Begley, formerly the senior advisor to the Undersecretary of Defense for drones and corporate leader to Lockheed Martin and Raytheon for their respective drone initiatives.
Following the completion of the merger and one for twenty-five reverse stock-split, there are now 9,886,305 million shares of common stock outstanding.
Details of the merger transaction, private placement and further information about AgEagle will be provided in a Current Report on Form 8-K filed with the SEC.