Benzinga | Jun 10, 2021 09:34AM EDT

AeroVironment 8-K Shows Co, SoftBank Entered 6th Amendment To Joint Venture Deal For HAPSMobile; Co. Now Has Exclusive Rights From HAPSMobile For Future Design, Manufacturing Work Of Existing Solar HAPS Known As 'Sunglider'

On May 29, 2021, AeroVironment, Inc. (the "Company") and SoftBank Corp. ("SoftBank") entered into the Sixth Amendment Agreement (the "JVA Amendment") to the Joint Venture Agreement governing their joint venture HAPSMobile Inc., a Japanese company formed in December 2017. Pursuant to the JVA Amendment, the Company (a) has exclusive rights from HAPSMobile for the future design and manufacturing work of the existing Solar HAPS currently referred to as the "Sunglider" subject to the Company's quality, performance and cost for such work being competitive with third parties and (b) subject to the foregoing, must remain the design and manufacturing authority for the existing Solar HAPS aircraft and future variants thereof, provided, however that if the Company is not capable of performing the necessary work due to unforeseen events, or where the Company's quality, performance or cost of the work performed is not competitive with that of third parties, HAPSMobile shall have the right to use a second supplier. Additionally, the Company and SoftBank agreed that neither of them would compete with HAPSMobile, including by engaging in similar project(s) with third parties, in the areas of the use of Solar HAPS in commercial telecommunication applications, provided, however, that each of the Company and SoftBank may discuss, test, partner or conduct other activities with other aircraft manufacturers and Solar HAPS providers where such activities are conducted on behalf of or for the ultimate benefit of HAPSMobile.



The foregoing description of the JVA Amendment does not purport to be complete and is qualified in its entirety by reference to the complete text of the JVA Amendment. The Company intends to seek confidential treatment for certain portions of the JVA Amendment. The Company will file the JVA Amendment as an exhibit to its Annual Report on Form 10-K for the year ended April 30, 2021.