Parazero Limited (ASX:PRZ) entered into a letter of Intent to acquire business of Delta Drone South Africa on March 12, 2020. Delta Drone South Africa entered into a share sale agreement to acquire Parazero Limited (ASX:PRZ) in a reverse merger transaction for AUD 8.9 million on October 7, 2020. As consideration, Delta Drone SA will be entitled to receive 203.51 million consideration shares and up to 45 million performance shares of Parazero Limited. Upon completion, Parazero Limited will change its name to Delta Drone International Limited and each of the existing Directors will remain as Directors of Parazero Limited and Christopher Clark will join the Board. It is also proposed that Christopher Clark will become Chief Executive Officer of Parazero Limited upon relisting, with current Chief Executive Officer, Eden Attias becoming Executive Chairman of the Company. Crucial to executing a binding agreement with Delta will be the immediate ability of ParaZero to raise additional funds via the execution of a convertible note to support ParaZero through the relisting process. As of June 26, 2020, 0.5 million notes were issued to Delta Drone SA, which is the counterparty to the proposed transaction to acquire Business of Delta Drone South Africa. Each note shall automatically be converted into ordinary shares immediately upon the completion of the acquisition of Business of Delta Drone South Africa. The notes have a redemption date of August 3, 2020.

The transaction is subject to ASX relisting to Parazero Limited, approval of shareholders of Parazero Limited and Definitive agreement. As of November 3, 2020, Parazero Limited issued notice to its shareholders for extraordinary general meeting to be held on December 3, 2020. The conditions must be satisfied by December 31, 2020. Delta Drone SA has obtained approval from the Federal Treasurer to be issued Shares. The Board of Directors of Parazero Limited unanimously recommended its shareholders to vote in favor of the transaction. As on December 3, 2020, shareholders of Parazero Limited approved the transaction. As on December 3, 2020, change of name from ParaZero Limited to Delta Drone International Limited has been processed with the Australian Securities and Investments Commission. As of December 8, 2020, with effect from the commencement of trading on December 10, 2020, the name change of Parazero Limited to Delta Drone International Limited will take place and it will trade under the ticker code “DLT”. The transaction is expected to be completed on December 7, 2020. Arnold Bloch Leibler acted as legal advisor for Parazero Limited.