Agricultural drone company AgEagle Aerial Systems yesterday announced a merger with EnerJex Resources in a stock trade.
Founded in 2015, AgEagle was named one of DroneLife’s “7 Best Agriculture Drones” last year and provides precision ag UAV solutions. Automated drones collect valuable data for farmers by flying over fields of corn, soy beans, wheat and other types of crops collecting thousands of ultra-high-resolution, cloud-loaded imagery using near-infrared sensors and cameras.
EnerJex, according to the company website is an “independent exploration and production company focused on the acquisition and development of oil and natural gas properties located in the Mid-Continent regions of the United States.” Press releases from both companies did not indicate how AgEagle will utilize the exploration company’s capital injection of $ 4 million in stock
EnerJex will be renamed AgEagle Aerial Systems and now trades on the New York Stock Exchange under the ticker symbol UAVS.
“The completion of this merger and subsequent financing is a significant milestone for our company,” commented Bret Chilcott, founder and CEO of AgEagle.
“We can now aggressively execute on our vision of becoming a leading drone and data analytics company, while generating meaningful value for our shareholders. We plan to invest and grow the data analytics division of our business to provide farmers with actionable insights to help them generate healthier crops more efficiently.”
Using algorithmic-based computer programs, precision-ag drone users can determine the crop health indicators by analyzing the amount of near-infrared light reflected from the plants.
“Healthy plants reflect more near-infrared light while unhealthy plants absorb the light. Using this high resolution, near-infrared image, a farmer or an agronomist is able to create a ‘prescription map’ that is then fed into the computers that guide large precision crop sprayers,” a company spokesperson explained. “As a result, chemicals, herbicides, pesticides and nutrients can be applied more precisely in the fields – saving money, increasing the amount of yield per acre, and improving the environmental impact of farming.”
A recent market report foresees a $4.2 billion value for the agricultural drone market by 2022 — representing a growth rate of 30 percent.