Volatus Aerospace Inc. (TSX: FLT) (OTCQX: TAKOF) has been awarded a five-year contract by the Government of Canada to supply Low-Cost Tactical Intelligence, Surveillance and Reconnaissance (ISR) Uncrewed Aircraft Systems (UAS) to the Canadian Armed Forces, according to a press release from the company.

The initial procurement covers 100 tactical ISR UAS systems, with options for Canada to acquire up to an additional 4,900 systems, for a potential total of 5,000 units. The government established a maximum price of C$5,000 per system and a maximum procurement envelope of C$25 million. Volatus stated its contracted pricing is commercially confidential.

The contract covers an end-to-end solution including aircraft, payloads, ground control stations, data links, training, sustainment, spare parts, documentation, and software and firmware support. Delivery of the initial tranche is expected to begin in the fourth quarter of 2026.

Volatus was selected through the first Request for Proposal under Stream 1 of the Government of Canada's Defence Drone Initiative (DDI) Marketplace. The company said it has qualified across all five DDI work streams, with this representing its first conversion of that qualification into a Canadian Armed Forces contract.

"Canada is seeking sovereign, secure and supportable defence technologies that can be fielded efficiently and scaled as operational requirements evolve," said Glen Lynch, Chief Executive Officer of Volatus.

The company noted that the optional systems beyond the initial 100 units are not committed purchases, backlog, or revenue, and any exercise of the options remains at the sole discretion of the Government of Canada. Future DDI opportunities will also be subject to separate government procurement processes.

Volatus is headquartered in Mirabel, Québec, and also operates an Operations Control Centre in Vaughan, Ontario.