Frankfurt The business model is special, but so are the associated challenges. Ulrich Grabowski wants to help medium-sized companies that have good ideas for green aviation but don’t have the money to implement them. The means to do this is his European Aeromarine Drones AG, EAMD for short.
“Many of the medium-sized companies that have innovative ideas are currently living on subsidies,” Grabowski told Handelsblatt. But there is no capital to go to the market. “We are offering these companies an equity stake.”
The money could then be used to complete prototypes and develop marketable aircraft or drones. “We support sales,” says Grabowski. “Furthermore, we are preparing the political ground for such new approaches and can act internationally.”
The business economist and business IT specialist has ambitious plans. Grabowski was responsible for strategy and sales in various management positions at ADAC for twelve years. He was then on the board of the Axa insurance group. More recently, the manager has accompanied several start-ups.
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His latest project is still in its infancy. EAMD has been on the stock exchange since the end of 2021, but since then the price has gone from a good two euros to more than 40 euros. With a market capitalization of around 15 million euros, however, even small-scale share purchases are enough to drive up the valuation. Furthermore, the securities are traded in the so-called over-the-counter market, for which there are significantly lower admission restrictions, with correspondingly higher risks.
So far there has been a participation and a collaboration
Grabowski knows the drawbacks, for example when it comes to raising capital. “We are currently in talks with 54 investors for a capital increase. But it is immensely difficult to attract lenders,” he admits. EAMD operates in a niche that lies between two markets. “Venture investors reject us because we are already listed. Traditional lenders often tell us it’s still too early to invest,” says Grabowski.
The growing problems faced by start-ups could help the manager’s business idea to get new money. Grabowski refers to the first participations and collaborations. A few weeks ago, EAMD partnered with Jedsy. The Swiss company has developed a delivery drone that can dock at a take-off and landing ramp installed, for example, on balconies.
>> Read also: The start-up Jedsy delivers to the balcony by drone
Most of the RS Red Eagle from Brandenburg has also been part of the portfolio for some time now. Sport aircraft manufacturer Reiner Stemme Aero helped develop two drones for the company. The smaller “Whisper” aircraft for regional use is expected to take off for the first time in 2023. The larger “Explorer” drone is said to be capable of covering greater distances and carrying up to a ton of cargo. Market maturity is expected in 2024.
Initially, hybrid thrusters are used: the aircraft flies mainly electrically, but a combustion engine booster can be activated as an auxiliary unit, for example over inhabited areas. According to Grabowski, hydrogen engines are also commonplace.
Initially, the entrepreneur has his sights set on working planes for reinsurance, disaster management, geocoding or reconnaissance for police or defense. Subsequently, however, manned aviation aircraft are also conceivable. Currently the demand comes mainly from abroad, for example from Istanbul or from an African state for border reconnaissance and fisheries monitoring.
So far, EAMD has not generated any sales
“We only include companies in our portfolio that can present their prototype in two years at the latest. And we mainly look at family-owned companies,” the EAMD head explains the procedure. There are a whole range of European companies in this area that are too small for traditional investors, with many of them holding “talks intensive”.
Due to its small size and over-the-counter listing, EAMD falls into the cracks of most analysts. Finding estimates is therefore difficult. After all, the experts at GBC Research, who specialize in midsize companies, put the stock on their watchlist in the summer.
Analysts expect the company will likely not generate sales in the current financial year. But for 2024 they rely on EAMD to generate revenues of seven million euros.
According to the interim report, the company had to accept an after-tax loss of approximately EUR 200,000 in the first half of 2022. The equity ratio was a good 65%, the existing capital is sufficient to cover the expenses arising from the business ongoing trade, according to the report.
It remains to be seen whether EAMD will ultimately be large and financially strong enough to deliver on Grabowski’s ambitious plans in highly regulated aviation. The manager is adamant: “Our goal is a green aviation industry, and it’s not about air taxis.”
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