Volatus Aerospace (FLT) Status update summary

Strategic context and market positioning

• Autonomous systems are now central to modern defense, with drones prioritized in Canada’s new Defence Industrial Strategy.

• Canada aims for 70% of defense procurement to be domestic, reversing past trends and supporting local industry.

• Volatus operates across drone platforms, autonomy software, remote operations, and services, with a national and international footprint.

• The company’s integrated platform aligns with Canada’s strategic priorities, including Arctic and remote operations.

• Export markets and dual-use technologies are key growth drivers, with increasing demand for ISR and defense partnerships.

Government policy and funding environment

• Over CAD 80 billion is committed to defense reinvestment, with CAD 50 billion targeted for small and medium businesses over 10 years.

• New agencies and funding streams (e.g., NRC IRAP, Borealis, BDC, RDAs) are established to accelerate procurement and support industry.

• The strategy emphasizes Canadian ownership of technology and manufacturing, de-risking investment and lowering capital costs.

• Demand signals from government are strong, but procurement cycles remain uncertain as new frameworks are implemented.

Operations, manufacturing, and partnerships

• The Mirabel facility is being refitted for drone production, with plans to manufacture large drones, docking systems, and attritable drones for military use.

• Specialized manufacturing focuses on aerospace standards and automation, aiming to meet both military and dual-use demand.

• Strategic partnerships include Ondas, Dufour, Kongsberg, and MatrixSpace, supporting technology integration and market expansion.

• The company is open to accretive M&A in Canada, Europe, and the U.S. to strengthen capabilities and market presence.