BT Brands Surges 63.78% on $390M Trading Volume After Merger with Drone Tech Firm Aero Velocity

BT Brands (BTBD) surged 63.78% on Sept. 3, with a trading volume of $390 million, marking a significant shift in its business strategy following an all-stock merger with Aero Velocity, a Cincinnati-based drone technology firm. The combined entity will focus on advanced drone technologies and AI-powered solutions for government and commercial clients, signaling a strategic pivot for the restaurant operator into the growing unmanned aerial systems sector.

The merger, unanimously approved by both boards, will see Aero Velocity shareholders own 89% of the new entity, while existing BT Brands shareholders retain 11%. The transaction includes an equity investment of $3 million to $5 million from Aero Velocity stakeholders. Upon closing, the company will rebrand as "Aero Velocity Inc." and continue trading on the Nasdaq Capital Market, with Mark Hastings, Aero Velocity’s CEO, leading the combined organization. The deal is expected to finalize in late 2025 or early 2026, pending shareholder and regulatory approvals.

Aero Velocity’s services include Drones-as-a-Service (DaaS) solutions for sectors such as agriculture, defense, and emergency response, leveraging AI and data science for aerial mapping and industrial inspections. The company previously acquired assets from Workhorse Group in 2024 to expand its technology portfolio. BT Brands, which operates restaurant concepts, aims to capitalize on the rapid growth of the drone market through this strategic consolidation.

Backtesting analysis of BTBD’s post-merger price action indicates a 63.78% increase on Sept. 3, with a trading volume of $390 million. This surge aligns with the market’s reaction to the merger announcement, reflecting heightened investor confidence in the company’s repositioning toward high-growth drone technologies. The stock’s performance underscores the potential for value creation through the integration of Aero Velocity’s capabilities into BT Brands’ existing operations.