Workhorse Group announced its intention to spin off its aviation division, which includes its SureFly personal helicopter, into a separate publicly traded company named SureFly Inc.
SureFly Inc. will encompass all SureFly aerial technology and expertise, including property related to the personal helicopter, but it will not own the assets related to the package express-related HorseFly drone, which will be retained by Workhorse.
Workhorse expects to grant SureFly a royalty-free, perpetual license to use the HorseFly drone, except with respect to deliveries implemented from a ground-based vehicle focused on package express. At the time of the spin-off, Workhorse expects to enter into a transition services agreement with SureFly to provide certain engineering and accounting services not anticipated to be provided immediately by employees of SureFly.
SureFly is currently an indirect, wholly owned subsidiary of Workhorse. In conjunction with the overall spin-off plan, Workhorse expects to retain a portion of SureFly Inc. common stock and will distribute a portion the common stock to existing Workhorse shareholders. Third-party investors, bringing new capital, will likely constitute the balance of the ownership of SureFly Inc.
“This agreement provides Workhorse with additional capital to bolster our balance sheet and, once the spin-off is complete, will enable us to focus all of our resources on our core automotive business,” said company CEO Steve Burns. “SureFly has been one of the most exciting products we've ever developed and reflects the best representation of the versatility of our innovative platform technologies. And while this new business will likely command a meaningful valuation, we believe the decision to spin off SureFly into a separate entity will better facilitate the long-term growth of both companies.”