Iconic Labs PLC (LON:ICON) is branching out into the drone business.
Through a deal with shareholder Ott Ventures, Iconic is set to take a controlling stake in unmanned drone specialist, Sting Industries, through a combination of convertible notes, warrants, cash and a finance facility.
Sting's modular drones are used in a wide range of applications for the military and security sectors.
They provide close range safety and protection by flying in front of the first person through the door in demanding urban environments confronted by special forces, military, police, and security personnel.
In addition, through the research and development associated with these drones, Sting collects, processes, and analyses significant quantities of data derived from flying and manoeuvring these sophisticated drones in tight indoor spaces.
Iconic added the non-binding letter of intent (LOI) is subject to due diligence and finalising a long-term financing facility of up to £50mln with European High Growth Opportunities Securitization Fund.
Brad Taylor, Iconic’s chief executive, said: "I have worked with Ott Ventures and the affiliated companies in Group Ott for many years and am delighted to have been able to sign this letter of intent.
“Sting is an exceptional company. I look forward to signing a financing facility with EHGOSF and completing this transaction."