• ACSL, Inc., our U.S. subsidiary, it entered into a Memorandum of Understanding with General Pacific, Inc. for a strategic distributorship partnership to provide sales, support, repair and service assistance for ACSL products in the U.S. market on July 12, 2023.
• ACSL Group and GenPac will aims to sell 50 units in the U.S. market during the current fiscal year.
• ACSL decided to additional investment to ACSL, Inc, in order to make a full-scale entry into the U.S. market and to accelerate the growth.

ACSL Ltd (Edogawa Ward, Tokyo; Satoshi Washiya, CEO, hereafter ACSL) hereby announces that on July 12, 2023, ACSL, Inc., our U.S. subsidiary, it entered into a Memorandum of Understanding (“MOU”) with General Pacific, Inc. (“GenPac”) for a strategic distributorship partnership to provide sales, support, repair and service assistance for ACSL products in the U.S. market.
With this move, the ACSL Group will begin full-scale sales in the U.S. market, first aiming to expand sales of its SOTEN small aerial photography drone.

 ■Background

The global drone market is growing rapidly and is expected to emerge as a 5 trillion yen market by 2030. Policies related to economic security and environmental considerations are accelerating in the global drone market. In the U.S., the National Defense Authorization Act (NDAA) has been enforced, prohibiting government procurement of Russian and Chinese drones. In addition, DJI, Chinese drone manufacturer, has been designated by the U.S. Department of Defense as a “China Military Enterprise” from October 2022. In this market environment, ACSL believes that it is possible to formulate a positioning based on the keywords “economic security”, “enterprise support”, and “application-specific”.

Global Drone Market Size Prepared by ACSL based on “Drone Industry Insights”

In its entry into the U.S. market, ACSL small aerial photography drone (SOTEN) was highly evaluated by infrastructure companies at a local exhibition for its use in inspection and surveying, and ACSL have also received positive feedback and confirmed purchase requests at several customer road shows. In January 2023, ACSL established a U.S. subsidiary ACSL Inc. in California, and through close collaboration with these potential U.S. customers, the Company has continued to improve its small aerial photography drones (SOTEN).

■MOU with General Pacific, Inc.

GenPac is a leading distributor within the sUAS and robotic industry. it partners with end users to provide the equipment and training for any missions to be implemented successfully. Beyond hardware, GenPac offers a variety of expert level training and software solutions. GenPac became interested in SOTEN when ACSL exhibited at the COMMERCIAL UAV EXPO held from September 6 to 8, 2022, and has been conducting demonstrations and other activities.

In order to expand sales in the U.S. market in the future, ACSL, Inc. aims to sell 50 units in the U.S. market during the current fiscal year by concluding an MOU for a strategic distributor partnership between ACSL, Inc. and GenPac. With the conclusion of this MOU, along with the additional investment in ACSL, Inc.. mentioned below, ACSL will accelerate its efforts in the U.S. market.

GenPac management and ACSL Group management

SOTEN demonstration at GenPac in 2022

ACSL decided to additional investment of 600,000 US dollars to ACSL, Inc, which develops and sells ACSL industrial drones in the U.S., in order to make a full-scale entry into the U.S. market and to accelerate the growth.
With the conclusion of this MOU and the additional investment, ACSL Group will accelerate our efforts in the U.S. market by fully launching our products in the U.S. market.

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