BT Brands stock soars on merger deal with drone tech firm Aero Velocity

Published 03/09/2025, 14:24
© Reuters.

Investing.com -- BT Brands Inc (NASDAQ:BTBD) stock surged 117% in premarket trading Wednesday after the company announced a definitive merger agreement with drone solutions provider Aero Velocity Inc.

The all-stock transaction will transform BT Brands into a company focused on advanced drone technologies and AI-powered solutions for government and commercial clients. Under the agreement, Aero Velocity shareholders will own approximately 89% of the combined company, while existing BT Brands stockholders will retain about 11% ownership on a fully diluted basis.

The deal includes an equity investment of between $3 million and $5 million by Aero Velocity shareholders. Upon closing, expected in the fourth quarter of 2025 or first quarter of 2026, the combined entity will be renamed "Aero Velocity Inc." and continue trading on the Nasdaq Capital Market.

"BT Brands considered a range of strategic initiatives, and we believe this proposed transaction represents an opportunity to deliver significant value to our stockholders," said Gary Copperud, Chief Executive Officer of BT Brands.

Aero Velocity provides drone-based services through a Drones-as-a-Service model, specializing in aerial mapping, data collection, industrial inspections, and infrastructure cleaning. The company serves government agencies, corporations, and educational institutions across sectors including agriculture, environmental monitoring, defense, and emergency response.

Mark Hastings, CEO of Aero Velocity, will lead the combined company after the transaction closes. The merger has received unanimous approval from both companies’ boards of directors and remains subject to shareholder approvals and customary closing conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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