Drone USA’s Path to Profitable Growth

Drone USA’s Path to Profitable Growth

Sep 21, 2017

OTC Disclosure & News Service

Drone USA, Inc. (OTCQB:DRUS) released the following letter to its shareholders today detailing profitable growth strategies focusing on three vantage points.

The text of the letter follows:

Dear Shareholders,

I wanted to share with you three exciting profitable growth strategies we are working on. We are attacking growth from three vantage points:

1) Police & U.S. Government Drone Sales

2) Growing Howco’s Product Line & Footprint

3) Acquiring Companies that Broaden Our Product and Customer Base

1) Police Drone Sales

As we stated in our press release two weeks ago, we demonstrated our Cyclops and Shadow Police drones for several police departments on Jennings beach in Fairfield, Connecticut. On that very same beach, a few weeks later, I am very sad to say two fishermen drowned not far from where we filmed the ship wreckage. Our thoughts and prayers go out their families. We need to get first responders our drones so they can quickly locate and deliver rescue equipment within minutes of a distress call. It is our mission to help first responders to prevent tragedies like the one on Jennings beach. We are currently modifying our Shadow drone so it can deliver an inflatable.

Back in August, we displayed and demonstrated our drones at the Connecticut SWAT competition in Simsbury, Connecticut. We also are now actively negotiating sales with several departments that competed in that competition.

At the end of summer, we sponsored and filmed the New Jersey Essex County Chief of Police Association’s golf outing. It had rained, very hard at times, during the entire event. Fortunately for us, but not the golfers, we were able to demonstrate the water resistant feature of our Shadow Police Drone. Most drones on the market today are not water resistant. The Shadow and Cyclops drones are water resistant.

2) Howco Growth Strategy

We are exploring three ways to increase sales and profit at our subsidiary Howco:

  • First, we are looking at the U.S. Government’s commitment to upgrade its nuclear arsenal. The Trump administration announced that the U.S. Government will spend in excess one trillion dollars to upgrade the U.S. nuclear arsenal. Howco is perfectly positioned to assist with that goal. Billions of dollars will be sourced through the DLA and other government sourcing avenues where Howco gets many of its contracts. We are immediately expanding our search across the all U.S. bid boards for items used to upgrade the U.S. nuclear arsenal.
  • Second, we are on the hunt for companies that want to source to the U.S. government but don’t know how. We can help these companies become registered suppliers to the U.S. government. We can guide these companies through the red tape and ultimately re-package their products according to complex government specifications and help them grow their bottom lines while growing ours simultaneously.
  • Third, we are looking to expand our foot print by opening up two new distribution centers – one in the southeast, possibly Louisiana and the other in Connecticut or New Jersey. Our pricing advantage stems from our close proximity to our suppliers. The closer we are to our suppliers the lower the inbound shipping cost. The lower the cost the more competitive we are.

3) Acquisition Strategy

We are looking to acquire companies that ultimately increase our customer base, add additional products and at times complement or enhance our drones. For example, we are looking at companies that install two-way radios in squad cars. This type of company will increase our customer base, the product and service we offer and enhance our product. This type of acquisition can help us fulfill a goal we have: to put a drone in every squad car in the United States. After the two-way radio is installed, our team of experts can install and integrate our mini-shadow, which is in development, into the car and its computer system. Imagine as the officer heads toward and arrest, the drone follows the officer filming his or her every activity. Or a criminal has run off and is in hiding, the drone finds the criminal with its thermal camera. The drone will also be equipped with a loud speaker, search lights and police lights.

Thank you all for your support.

Respectfully Submitted,

Michael Bannon
Chairman/CEO

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