Elbit to invest in production lines and further development of TIKAD and pay Duke royalties for a period of fifteen years following USD $50 million in cumulative revenues from sales of TIKAD
Fort Lauderdale, Florida,–(Newsfile Corp. – February 4, 2021) – UAS Drone Corp. (OTCQB: USDR), a leader in robotics technology and drone solutions, announced today that its wholly owned Israeli subsidiary, Duke Airborne Systems Ltd. (“Duke”), and Elbit Systems Land Ltd. (“Elbit”) signed a Collaboration Agreement (“Agreement”) for global marketing and sales, and the production and further development of Duke’s developed advanced robotic system mounted on an Unmanned Aerial Solution (UAS), armed with lightweight firearms, or TIKAD.
According to the main terms of the Collaboration Agreement –
- Duke has granted Elbit a worldwide exclusive license for the use of Duke’s knowhow and intellectual property, and for the marketing, sales, production, and further development of the TIKAD for military, defense, homeland security and para-military uses.
- The parties will also cooperate in continuing a project (“Project”) that has already started with a customer in the Asia Pacific region. Elbit has agreed to invest, at its discretion and pursuant to certain milestones, in the further development and setting up of serial production lines of TIKAD and may elect to increase such investment subject to the satisfaction of certain criteria, including Elbit’s right to terminate the Agreement if, for example, the Project is cancelled by the customer. Such investment amounts will be made into Elbit’s owned assets and production lines of TIKAD. Elbit will recoup fifty percent of its investment amount, up to $6 million, by offsetting fifty percent of royalty payments that may be due to Duke.
- In addition to the cooperation in the Project, Elbit will pay Duke royalties from revenues received from world-wide sales of TIKAD, with royalty rates ranging from low to mid double figure percentages, depending on the tiers of the selling price of TIKAD. Revenues to be received from the Project will entitle Duke to a higher payments and rate of royalties. Elbit will pay Duke royalties on sales of TIKAD units for a period starting from the date of the Agreement until 15 years following receipt of US$50 million in cumulative revenues from sales of TIKAD units.
- Duke to pay Elbit similar rates of royalties for revenues received by Duke from sales of its advanced robotic system for civil use, if such systems will include new know-how developed by Elbit.
Elbit Systems Land is a subsidiary of Elbit Systems Ltd., an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world.
We believe that this collaboration represents a significant opportunity for UAS Drone Corp. to expand its global business and sales of its TIKAD product. There is no guarantee that UAS Drone Corp., via Duke, will recognize any royalties or that the further development or future sales of the TIKAD will be successful.
About UAS Drone Corp. and Duke Robotics Inc.:
In June 2020, UAS Drone Corp. (OTCQB: USDR) completed the acquisition of Duke Robotics Inc. Duke Robotics is a forward-thinking company focused on bringing necessary products and solutions to the defense sector. Duke Robotics developed TIKAD, an advanced robotic system designed to serve the growing need for tech solutions in the combat field. Duke Robotics’ revolutionary stabilization technology enables remote, real-time and accurate firing of lightweight firearms and weaponry via an unmanned aerial platform (UAV). The proprietary and confidential complex kinematic algorithms address the crucial need of modern warfare to carry weapon on remote to bear on remote hostile targets without risk to the military personnel.
We believe that troops can use TIKAD to handle potentially dangerous situations quickly and efficiently from the air. This technology also allows troops to potentially disarm a situation remotely, without ever deploying a ground presence.
For more information about Duke Robotics, please visit www.dukeroboticsys.com or view documents that UAS Drone files with the Securities and Exchange Commission at http://www.sec.gov.
This press release contains forward-looking statements. Words such as “future” and other similar expressions or future or conditional verbs such as “will” are intended to identify such forward- looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs as well as assumptions made by and information currently available to us. For example, when we discuss the potential development of our TIKAD system, the potential revenues and/or royalties that may be derived from the Agreement, and the belief that the collaboration represents a significant opportunity for UAS Drone Corp. to expand its global business and sales of its TIKAD product, we are using forward looking statements. Accordingly, our actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment including, but not limited to: the successful integration of acquisitions; the continued development of our products; the ability for Elbit to terminate the Agreement, or cease funding certain the development the TIKAD or the marketing, sales and production of the TIKAD, at its discretion; significant fluctuations in foreign currency exchange rates; and competition, including technological advances. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Reports on Form 10-Ks and Quarterly Reports on Form 10-Qs. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact name: Erez Nachtomy
Phone number: +97248124101
Email address: [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/73658