Dallas, Texas, July 28, 2021 (GLOBE NEWSWIRE) -- Astro Aerospace Ltd (OTCQB: ASDN) (" Company" or " Astro"), a global leader in electric vertical take-off and landing (eVTOL) aerial vehicles and drones, today announced that it has signed a letter of intent with Lotus Mobility Ltd. (" Lotus") to acquire all IP, technology, and exclusive global distribution rights to Lotus's line of cutting-edge electric aircraft.
In exchange for 3 million Astro Shares, Astro will acquire 51% of Lotus's subsidiary Liaoning Tongda Transport Technologies Co. Ltd (" LTT"), along with an exclusive, perpetual license to all LTT Technology and IP for use in Astro's business and the international distribution rights for LTT's 2-seater RX1E and RX1E-A, 4-seater RX4E, freighter KN60F and RX Seaplane. In addition, the companies will pursue joint research and development of the next generation of electric aircraft through a development and commercialisation agreement with Liaoning General Aviation Research Institute (" LGAA"), investing initially $3 million in operations and research and development. SOME of the initial projects to be undertaken by LTT and LGAA is the development of a 9- and a 19-seater plane, with Astro commanding exclusive international distribution and naming rights for these and all other future products. In addition, Astro will have the first right of refusal to acquire the remaining 49% of LTT.
In an effort to jointly explore opportunities in the Asia Pacific region, Astro and LTT will also establish Singapore-based Astro Apac Pte Ltd. Astro Aerospace will own 51% OF ASTRO Apac Pte Ltd, with the remaining 49% held by Lotus Mobility. Astro will contribute $1 million as part of an overall raise to expand to new opportunities in the Asian Pacific markets.
In China, Astro and LTT plan to jointly develop a 4-hectare site to construct a state-of-the-art aviation exhibition for learning and tourism purposes, along with a 133-hectare site to host a regional flight school, airport, hospitality facilities, and residences.
"This is an amazing opportunity for Astro Aerospace to further expand our vertical product offering while joining forces with Lotus to further develop our global reach. Astro's majority stake in LTT will provide us with direct access to the Asia Pacific region as well as pioneering aerospace technology produced by LGAA, including the RX4E, China's first domestic 4-seater electric aircraft," said Patricia Trompeter, Chief Executive Officer of Astro Aerospace.
Neil Sumaru, Chief Executive Officer of Lotus Mobility Ltd, commented, "We are excited to partner with Astro Aerospace to extend our market reach beyond Asia Pacific to North America and Europe. With Astro, we will co-develop next generation electric aircraft, beyond our current two- and four-seater models, to include nine- and nineteen-seater types."
About Astro AerospaceAstro Aerospace is the developer of the world's most advanced, autonomous, short haul, eVTOL (Electric Vertical Takeoff and Landing) aerial vehicles.
Our mission is to make self-flying unmanned and manned vehicles available to anyone, at anytime, from anywhere, and to turn this new and exciting aircraft into a mainstream mode of transportation.
About Lotus Mobility LtdLotus Mobility Ltd is a US mobility group dedicated to developing technologies, products, and services for electric vehicles for the air, land, and water transport. Lotus has strategic operating bases in the Asia Pacific region, plus partnerships in other regions of the world.
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