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Resilient Energy Inc. (OTC:RENI) Announces LOI to Acquire 100% of Challenger Aerospace & Defense Inc., entering the $35 Billion Global Drone Market

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Resilient Energy, Inc. (RENI) announces the acquisition of Challenger Aerospace & Defense Inc. and subsidiaries, positioning itself in the growing Drone market projected at USD 35.28 billion in 2024. The acquisition aims at robust revenue growth, expanded margins, and strong cash flow generation.
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Insights

The acquisition of Challenger Aerospace & Defense Inc. by Resilient Energy, Inc. represents a strategic move to diversify and strengthen its position in the burgeoning drone market. The transaction includes tangible assets, such as over $3 million in current purchase orders, which can provide an immediate revenue stream and positively impact the company's financials. Moreover, the integration of CAS's intellectual property and product portfolio could enhance RENI's competitive edge and market share.

From a financial perspective, the deal's timing is pivotal, coinciding with a period of significant growth in the drone industry. The projected market value of USD 35.28 billion by 2024 and a CAGR of 13.9% signal a robust expansion trajectory. Investors should monitor the acquisition's impact on RENI's earnings, margins and cash flow, as these metrics will be key indicators of the transaction's success. Additionally, the creation of a tailored manufacturing financing facility suggests a proactive approach to capital management that could further accelerate growth and improve operational efficiency.

The UAV/Drone market is experiencing rapid growth due to advancements in technology and increasing adoption across various sectors, including defense, commercial and government agencies. RENI's acquisition of CAS positions the company to capitalize on this trend by gaining access to state-of-the-art manufacturing capabilities and a diversified product range. The global reach and existing customer base of CAS provide a strategic advantage in scaling operations and tapping into new markets.

It is also important to consider the competitive landscape. With CAS's portfolio of over 40 products and a first-of-its-kind UAV/UAS training program, RENI could potentially disrupt the market by offering comprehensive solutions that address the needs of a wide range of customers. The emphasis on agility in delivery and larger-scale sales opportunities could translate into a significant market share gain, provided the company successfully leverages CAS's assets and maintains innovation momentum.

The legal implications of this acquisition are multifaceted, including regulatory approvals and the potential for intellectual property synergies. The mention of the required regulatory filings on a Form 8-K indicates due diligence in compliance with securities law, which is crucial for investor confidence. Additionally, the ownership of intellectual property rights could lead to patent advantages and licensing opportunities, further enhancing RENI's revenue streams.

However, it is essential to scrutinize the terms of the Letter of Intent and subsequent definitive agreements to assess the legal and financial commitments RENI is undertaking. The acquisition's success will partly depend on the seamless integration of CAS's legal and operational frameworks into RENI's existing structure. Any oversight in this process could result in unforeseen liabilities or delays in realizing the intended benefits of the acquisition.

Resilient Energy, Inc.'s intended acquisition marks the start of its strategy targeting firms in the Energy and Tech sectors. With the Drone market projected at USD 35.28 billion in 2024, growing at 13.9% CAGR, it highlights the company's commitment to robust revenue growth, expanded margins, and strong cash flow generation.

HOUSTON, Feb. 22, 2024 /PRNewswire/ -- Resilient Energy, Inc. (OTC Markets: RENI) ("RENI" or "the Company") announces the signing of a Letter of Intent (LOI) to acquire 100% of Challenger Aerospace & Defense Inc. ("CAS") and two operating subsidiaries, including over $3 million in current purchase orders, intellectual property and an impressive portfolio of existing and prototyped products. The acquisition is expected to be completed in the upcoming weeks. The Company will release a formal statement and the required regulatory filings on a Form 8-K. 

RENI will acquire 100% of the main holding company, Challenger Aerospace Systems ("CAS"), and all of its assets. CAS main business is manufacturing and developing technology for the UAV/Drone market, making it one of the leading creators in the rapidly developing field of unmanned aerial, sea and land vehicles. It designs subsystems, develops platforms, manufactures airframes, and offers operator training programs. Challenger Aerospace Systems serves the global market from its state-of-the-art facilities in the United States. CAS serves a global customer base consisting of private and commercial operators, government agencies and defense organizations.

The two additional operating subsidiaries are:

  • Challenger Training and Support provides an approved UAV/UAS training program. It is the first in its field and focuses on the manufacturing, flight operation and maintenance of the systems used in Unmanned Aerial Vehicles or Drones.
  • Challenger Aerospace Systems manufactures ground stations and aircraft control systems, providing off-the-shelf portable, flexible and universal solutions for controlling unmanned vehicles and payloads.

CAS business assets encompass an impressive portfolio exceeding $3 million in confirmed purchase orders. In line with its strategic vision for growth, RENI will extend a tailored manufacturing financing facility as a component of its future acquisition commitments. This initiative aims to expedite order fulfillment, fostering agility in delivery timelines, while simultaneously incentivizing larger-scale sales opportunities.

RENI's CEO, Mr. Jon Bianco, stated on achieving this milestone event: "We have emphasized our dedication to seizing opportunities in advanced technology areas aligned with our strategic vision. Today, we celebrate a significant milestone with the formal intention of acquiring Challenger Aerospace & Defense Inc. Its global reach and market potential, with over 40 available products, promises significant revenue potential. The unmanned aerial vehicle and drone technology domain is a multibillion-dollar market. This intended acquisition reinforces our commitment to value creation through revenue growth, margin expansion, and cash flow generation."

The global Unmanned Vehicle (Drone) market size is estimated at USD 35.28 billion in 2024, and is expected to reach USD 67.64 billion by 2029, growing at a CAGR of 13.9% during the forecast period (2024-2029) according to a Growth Trends and Forecast report from Mordor Intelligence. Technological advances in terms of payloads and electronics are expected to augment the rapid growth of the drone's market.

About Resilient Energy, Inc.

Resilient Energy, Inc. (OTC: RENI) operates as an independent energy company with a strategic business plan centered on the acquisition, exploration, development, and production of North American conventional oil and gas properties. The company's mission is to discover, develop, and enhance the production of traditional oil and gas plays. Resilient Energy prioritizes properties and companies specializing in shallow vertical wells with existing production, aiming to boost yields through marginal efficiency-based improvements. Additionally, the company seeks identifiable PUD opportunities for further development to increase reserves. Its dedicated management team has identified several properties and companies aligned with these criteria. Resilient Energy distinguishes itself by offering a consistent deal flow and maintaining operational efficiency at low costs.

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Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in section 27a of the United States Securities Act of 1933, as amended, and section 21e of the United States Securities Exchange Act of 1934, as amended. Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other information relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates, and projections about our business based partly on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and Resilient Energy, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Contact Information:

Marc Pindus
President
Resilient Energy, Inc.  (OTC: RENI)
Phone:  713-742-2702
Web: https://resilientenergyinc.com/ 
Email: info@resilientenergyinc.com 

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SOURCE Resilient Energy inc.

FAQ

What acquisition did Resilient Energy, Inc. (RENI) announce?

RENI announced the signing of a Letter of Intent (LOI) to acquire 100% of Challenger Aerospace & Defense Inc. (CAS) and two operating subsidiaries.

What is the market projection for the Drone market in 2024?

The Drone market is projected at USD 35.28 billion in 2024, growing at a CAGR of 13.9%.

What does Challenger Aerospace Systems specialize in?

Challenger Aerospace Systems specializes in manufacturing and developing technology for the UAV/Drone market, designing subsystems, developing platforms, and offering operator training programs.

Who is the CEO of Resilient Energy, Inc. (RENI)?

Mr. Jon Bianco is the CEO of RENI.

What is the estimated global market size for Unmanned Vehicles (Drones) in 2029?

The estimated global market size for Unmanned Vehicles (Drones) is expected to reach USD 67.64 billion by 2029, growing at a CAGR of 13.9%.

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