By David Adlerstein

Speaking at an online shareholder conference last week, the chief executive officer of UAV Corp., the unmanned aerial vehicle company based in Gulf County, offered a note of optimism as he outlined financial steps the company has made over the last two months to boost investor confidence.

“The future is bright for everyone; just stay tuned, there’s a lot to come,” said Michael Lawson, CEO of UAV Corp, a penny stock traded over the counter as UMAV.

“We have a moral obligation to move forward in a strategic way. I’m treating the shareholder out there no differently than how my wife and I are treating our investment.

“You have to bleed a little bit but we’ll get rewarded,” he said. “We have to bleed a little more; we’ll be rewarded when we’re successful.”

Outlining what the company termed “a bold trajectory toward industry leadership,” Lawson offered to shareholders a comprehensive update of measures it has taken in recent months to capture a greater piece of what it projected will be a $242 billion unmanned aerial vehicle market by 2037. 

He said the company had received letters of intent for funding of up to $20 million, which he described as “a strategic commitment” that would accelerate the completion of its DART SA70-12 airship, reduce outstanding debt, and quickly expand its manufacturing capabilities. Under the agreement, the funding partner has one board seat.

“This prospective capital serves as a catalyst for exponential growth and operational excellence. We may not need it, but we’ll have access to it. We’ll be very careful as we draw down money,” Lawson said, noting that the company plans to retire in the near term about $4 million to $5 million in debt inherited from HTTI, the previous corporate owner.

In early January, the company announced it would continue reducing the volume of its authorized shares, which over the last several months have been lessened from 2 billion down to 800 million, and now stand at 500 million shares.

“After seeing the appreciation from our shareholders regarding the initial reduction, we felt it was imperative to continue taking steps to enhance shareholder value,” said Lawson. “This further reduction reflects our dedication to disciplined financial management and our confidence in the company’s long-term growth trajectory.”

Lawson stressed the company was continuing its authorized share reduction to mitigate dilution risks, which can occur when an investor comes in and purchases a large chunk of the company, and existing shareholders then have a smaller piece of a much larger pie.

“We’re making progress toward a prestigious OTCQB listing, amplifying liquidity and credibility for institutional investor appeal,” said Lawson.

Jay Kesten, an associate professor at the Florida State State University College of Law who specializes in corporate finance and governance, said the reduction in authorized stock will give some comfort to existing shareholders. He said the company’s stated intent to relist shares on the next tier up of over-the-counter trading is encouraging.
 
 

“There actually may be a significant benefit, because to qualify for that you have to engage in periodic filings,” Kesten said. “If they uplist, we’re going to get tons more information on them. There will be more regulatory information and way more accountability. The public will have full access to everything the investors do.”

Lawson said the company had brought in a talented group of experts in military intelligence, from the Air Force, Marines and National Security Agency. “This is more than just expanding our leadership team,” he said. “We’re bringing in individuals who have led major defense initiatives, pioneered groundbreaking security solutions, and executed high-level intelligence strategies.

“The urgent problems in our country are border security, and this is what we’re going after as it relates to sales,” Lawson said. “Our focus is to build the company with sales.

“Our issue is going to be more whether we’re in a position to deliver the orders than it is to make sales,” he said. “We have far more capability than our competition.”

As it stands now, the stock trades at between two and three cents a share, after it fell from a high of 16 cents due to a conversion of preferred stocks to common stocks.

“That hurt, and you live and learn,” Lawson said. “Some conversions we signed on to to get rid of some debt. We’ve stopped the bleeding. We’ve taken care of a lot of the small ones.”

He said the steps the company is making should gradually boost share price. “I wouldn’t be surprised if we hit a dollar. That’s a goal,” he said.

In his review of the company. Kesten said, purely as conjecture and not as professorial analysis, that “this may all be an effort to meet the (requirements) of an equity investor willing to come in.

“Whether it’s warranted optimism or not, undue optimism is the norm rather than the exception with companies,” he said. “I don’t see any red flags here. Are they taking these steps as window dressing because they think they have an equity investor coming in? That would be a big deal, an outside voucher who believes in the technology.”

Lawson did note the company had been approached to be part of a merger of three companies into an existing company traded on the NASDAQ exchange. “Right now we’re more focused on batting singles,” he said.

He said test inflation of the SA70-12 airship is forecast for late March, a final check before a flight near term together with representatives of the Federal Aviation Authority.

The company plans an upcoming open house at its Wewahitchka manufacturing facility and Costin Airport that will feature live demonstrations of UAV and airship technologies, insights into prospective government and commercial contracts, and a tour of its production operations, bolstered by a joint venture with Atlantic Industrial Group.

“We’re at a turning point,” said Lawson. “We have laid bare our vision – a fusion of cutting-edge technology and shareholder-centric strategy that’s set to propel UAV Corp. to new heights.”