Medigus Announces First Authorization For Commercial Drone Deliveries in Brazil

Rhea-AI Summary

Medigus Ltd. (Nasdaq: MDGS) announced that ParaZero Ltd., in which it holds a 40% stake, has received Brazil's first authorization for commercial drone deliveries from ANAC. This authorization allows the DLV-1 NEO drone to operate beyond visual line of sight, carrying loads up to 2.5 kg within a 3 km radius. ParaZero's patented SafeAir system enhances drone safety with a real-time monitoring smart parachute. The commercial drone market is anticipated to reach $85 billion by 2025, emphasizing the significance of this development in opening new business opportunities for commercial operators.

Positive

• ParaZero granted Brazil's first commercial drone delivery authorization.
• Medigus holds a 40% stake in ParaZero, facilitating potential revenue growth.
• The ParaZero SafeAir system enhances drone safety, potentially saving operators millions.

Negative

• None.

Tel Aviv, Israel, Feb. 14, 2022 (GLOBE NEWSWIRE) -- Medigus Ltd. (Nasdaq: MDGS), a technology company engaged in advanced medical solutions, innovative internet technologies and electric vehicle and charging solutions, announced today that ParaZero Ltd. ("ParaZero"), a privately held company engaged in drone technology with an innovative patented safety system for drones, of which Medigus has a 40% ownership stake, confirmed that a drone carrying its ParaZero SafeAir^TM system was granted the first authorization for commercial drone deliveries from The Brazilian National Civil Aviation Agency (ANAC).

ANAC authorized the manufacturer, Speedbird Aero, to carry out commercial drone deliveries in Brazil. Over the past two years, ParaZero has worked closely with Speedbird Aero to equip the Speedbird Aero DLV-1 NEO drone model with the ParaZero SafeAir^TM system.

This is the first authorization granted by ANAC for the commercial operation of an unmanned aircraft used in product delivery. The authorization enables the remotely piloted aircraft, model DLV-1 NEO, to operate commercially on beyond visual line of sight routes (BVLOS), that is, beyond the operator's visual line of sight.

ParaZero has developed a patented drone safety system designed to protect people and payloads, providing a solution to reduce the risk of a drone's malfunction in an urban environment. Unique in the industry, the system includes a smart parachute system that monitors drone flight in real time, identifies critical failures, and autonomously triggers a parachute in the event of an emergency. This innovative solution may save commercial drone operators millions in losses.

Speedbird Aero will now be able to use the drone to carry out deliveries with loads of up to 2.5 kg within a radius of 3 km. The ParaZero SafeAir^TM system will enable the Speedbird Aero to fly safely in urban environments, maintaining safety margins which include not flying over people, keeping distance from possible sources of electromagnetic interference, observing maximum and minimum operating altitudes and weather conditions.

According to a Feb. 10, 2022 report by MarketWatch, for the period 2017-2025, the value of small drone shipments will reach $85 billion, including sales of UAV hardware, software and service spending. According to the FAA, there are currently more than 870,000 registered drones in the U.S. alone, with 40 percent of them licensed for commercial use. While there is no official reporting on drone crashes, industry experts have estimated as many as 30 percent of drone pilots have crashed a drone. The resulting damage from these crashes has led many CAAs to strictly regulate commercial drone flight patterns.

For commercial operators, the ability to operate in close proximity to people and structures is critical, as it opens new verticals and previously unattainable business opportunities.

ParaZero’s safety technology contains a portfolio of ASTM F3322-18 compliant parachute systems for the DJI Mavic 2, Phantom 4, Matrice 200, Matrice 300 and the Airobotics Optimus drone. ASTM F3322-18 requires over 45 aerial parachute deployments with a third-party testing agency. These tests give operators and regulators the confidence required in the three performance pillars of a drone parachute system: effectiveness and reliability in all failure scenarios, rated descent rate, and minimum flight altitude.

About Medigus

Based in Israel, Medigus Ltd. (Nasdaq: MDGS) is a technology company focused on innovative growth partnerships, mainly in advanced medical solutions, digital commerce and electric vehicle markets. Medigus' affiliations in the medical solutions arena include ownership in Polyrizon Ltd. and ownership in industry 4.0 company, ScoutCam Inc. The Company’s affiliates in digital commerce include Gix Internet Ltd., Jeffs' Brands Ltd. and Eventer Technologies Ltd. In the electric vehicle market, Charging Robotics Ltd. and Revoltz Ltd. are also part of the Company’s portfolio of technology solution providers. To learn more about Medigus’ advanced technologies, please visit http://www.medigus.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Medigus’ current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Medigus could differ materially from those described in or implied by the statements in this press release.

The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed in any filings with the SEC. Except as otherwise required by law, Medigus undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Medigus is not responsible for the contents of third-party websites.

Company Contact:
Tali Dinar
Chief Financial Officer
+972-8-6466-880
ir@medigus.com

Investor Relations Contact:
Dave Gentry
RedChip Companies Inc.
1-800-RED-CHIP (733-2447)
Or 407-491-4498
MDGS@redchip.com

FAQ

What is the significance of ParaZero's authorization for MDGS?

ParaZero's authorization for commercial drone deliveries indicates strong growth potential for Medigus, given its 40% stake in the company.

What capabilities does the ParaZero SafeAir system provide?

The ParaZero SafeAir system offers a smart parachute for drones, enhancing safety by autonomously deploying in emergencies.

What impact could the drone delivery market have on Medigus?

The anticipated $85 billion drone delivery market by 2025 could lead to significant business opportunities for Medigus through its stake in ParaZero.

How much weight can the DLV-1 NEO drone carry?

The DLV-1 NEO drone can carry loads of up to 2.5 kg for commercial deliveries.

What is the operating range of the DLV-1 NEO drone?

The DLV-1 NEO drone is authorized to operate within a 3 km radius.