Indian drone maker ideaForge Technology, through its US subsidiary has signed a joint venture agreement with First Breach Inc. on Sept 23, to expand operations in America.
Joint venture to manufacture and distribute drones in the US
Under the agreement, ideaForge Technology Inc. and Delaware-based First Breach Inc. will set up a new entity, First Forge Technology Inc., in the United States.
The proposed joint venture will focus on licensing, sourcing, designing, engineering, manufacturing and distributing specific ideaForge UAVs in the US. Both sides may also expand into other activities with mutual agreement.
50:50 ownership structure in the new JV
Both ideaForge and First Breach will hold 50% stake each in the joint venture. The agreement gives both companies equal rights to appoint two directors each on the board.
The JV will also require consent from both partners for critical decisions such as changes to the capital structure, entering new business lines, or altering the number of directors. Both parties will also have the first right to subscribe to any new share issuance by the joint venture.
JV formation subject to due diligence and approvals
The formation of the new company is subject to satisfactory completion of due diligence and necessary statutory and regulatory approvals in the US.
The proposed Joint venture will now be headquartered in the US. The regulatory filing highlighted that tts turnover and size cannot be determined at this stage.