Drone USA (OTC:DRUS) shares skyrocketed on Monday after the company announced that its subsidiary, Howco Distributing Co was awarded a hefty three year contract from the US Government’s Defense Logistics Agency.
Founded nearly thirty years ago, Washington-based Howco Distributing is a premier supplier of spare and replacement parts to a wide variety of Federal Government agencies, U.S. military prime contractors and commercial customers worldwide.
The service provider, manufacturer and reseller of drones and distributor of products to the U.S. Government, saw its shares rise in the hundreds of percent’s after announcing the news.
The contract has an option to be extended for an additional two years for trailer support components.
Drone USA’s (OTC:DRUS) Chief Executive Officer, Michael Bannon, stated, “We are delighted to receive this contract. With their dedication and strong work ethic, our Howco team made this happen. I am proud of all of them.”
The VP of Business Operations at Howco, Matt Wiles, commented, “Our ability to work as a team is what separates us from our competitors. A contract this one doesn’t just happen in our sales department; it happens because our sales department and fulfillment team are in lockstep with one another.”
The Sales Manager at Howco, Lindsay Somica, also remarked, “This particular solicitation was a labor of love. The award was for a small local OEM. We worked closely with them to obtain fair pricing, which we secured for the length of the five-year contract in order to avoid any issues that could arise in our offer. Three rounds of strategic negotiations with the DLA over six months sealed the deal.”
Last month the company also announced a reseller partnership with Thermaxx LLC.
Thermaxx LLC helps clients save energy with easy to use, removable insulation jackets when traditional stay-in-place insulation is not practical, especially for mechanical systems, pipes, valves and heavy equipment.
Mr. Bannon stated, “As we re-position and re-brand our company, we will be changing our corporate name to Bantek Inc., which will have three divisions: Distributing (Howco Washington and Howco CT), Aerospace (Drone USA) and Environmental & Energy Savings (Thermaxx). Being a founder of Thermaxx LLC, I am intimate with Thermaxx’s products and patented technology. Prior to founding Drone USA, I managed Thermaxx’s international division. We will now be selling Thermaxx jackets internationally in South and Central America, Africa, the Middle East and Asia. We will also be selling domestically to Bantek’s customers in the United States.”
“Thermaxx is excited about the opportunities that Drone USA’s Environmental & Energy Savings division will bring to the table,” commented Philip J. Johns, the Chief Executive Officer of Thermaxx, LLC.
Johns added, “We are always pushing to introduce new technology and innovation into the insulation industry, making Bantek an ideal fit. Our presence both overseas and in North America can benefit from Bantek’s wide reach, while Bantek’s customers can be assured that they are receiving the best energy saving solutions in the market.”