Volatus Aerospace Corp. Announces Intention To Amend Its Convertible Debentures

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TORONTO, ON / ACCESSWIRE / August 19, 2024 / Volatus Aerospace Corp. ("Volatus" or the "Company") (TSXV:VOL)(OCTQB:VLTTF), a leader in the operation of piloted and remotely piloted aircraft systems (drones), announces that, pursuant to TSX Venture Exchange (the "Exchange") Policy 4.1 - Private Placements, the Company has submitted an application to the Exchange for acceptance of an amendment to the terms of the Company's issued and outstanding senior unsecured convertible debentures (the "Convertible Debentures"), which bear interest at a rate of 12.0% per annum and are convertible into common shares of the Company. There are currently $2,646,000 aggregate principal amount of Convertible Debentures issued and outstanding. The Convertible Debentures were issued pursuant to a debenture indenture dated May 11, 2023 between the Company and TSX Trust Company (the "Indenture"). Please refer to the Company's press releases dated April 13, 2023 and May 11, 2023 for further information related to the Convertible Debentures and the private placement of Convertible Debentures.

The Company will amend the terms of the Convertible Debentures to provide for an additional one-time premium payment to holders of Convertible Debentures (the "Debentureholders") equal to 1% of the aggregate principal outstanding of the Convertible Debentures payable on September 30, 2024 payable to holders of record as of May 31, 2024 (the "Debenture Amendment"). The Debenture Amendment will occur concurrently with the Debentureholders approving a postponement in the timing of the interest payment due on June 30, 2024 until September 30, 2024. Pursuant to the Indenture, the Company has obtained the requisite Debentureholder approval of the Debenture Amendment and the postponement of the June 30, 2024 interest payment until September 30, 2024. All other terms of the Convertible Debentures will remain the same. The Company will enter into a first supplemental indenture to the Indenture with the TSX Trust Company to give effect to the Debenture Amendment. The Debenture Amendment is subject to the final acceptance by the Exchange and the approval of Debentureholders holding in the aggregate not less than 66⅔% of the principal amount of Convertible Debentures outstanding.

About Volatus
Volatus Aerospace Corp. is a leading international provider of aerial intelligence solutions, using drones and commercial aircraft. Volatus serves civil, public safety, and defense markets with imaging and inspection, security and surveillance, equipment sales and support, training, as well as R&D, design, and manufacturing. We are focused on introducing green and innovative drone solutions to supplement and replace traditional aircraft and helicopters for long-linear inspections such as pipeline, energy, rail, and cargo services. Volatus is committed to carbon neutrality; the fostering of a safe, equitable and inclusive workplace; and responsible governance.

Contact Details
Abhinav Singhvi
Chief Financial Officer
Volatus Aerospace Corp.
Abhinav.singhvi@volatusaerospace.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the Debenture Amendment and has neither approved nor disapproved the content of this press release.

Forward-Looking Statements
This news release may contain forward-looking information and forward-looking statements (within the meanings of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward- looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company's business. Forward-looking statements in this news release include, but are not limited to,: receipt of final acceptance of the Exchange with respect to the Debenture Amendment; receipt of the requisite Debentureholder consent to approve the Debenture Amendment and postponement of the June 30, 2024 interest payment; the Company entering into a supplemental indenture to reflect the Debenture Amendment; and timing of the June 30, 2024 interest payment.

The forward-looking statements in this news release are based on current assumptions and expectations of management of the Company. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Actual events and conditions could differ materially from those expressed or implied in this news release as a result of known or unknown risk factors and uncertainties affecting the Company. Several factors could cause results to differ materially from those discussed in the forward-looking statements, including risks regarding the industry in which the Company operates, economic factors, the equity markets generally and risks associated with growth and competition. Additional risk factors are also set forth in the Company's annual information form and other filings available on the Company's SEDAR+ profile at www.sedarplus.ca. Although the Company has attempted to identify certain factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Therefore, readers should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to update or revise any forward-looking statement publicly, whether as a result of new information, future events or otherwise.

SOURCE: Volatus Aerospace Corp.