Tactical Services Inc (OTCMKTS:TTSI) Is The Latest Drone Play To Hit The Market

Tactical Services Inc (OTCMKTS:TTSI) is the latest company that recently entered the exciting drone sector.We had a look at the market conditions and believe that the reaction to the news was very positive.Market participants know very well that the revenue could grow at a high pace from now on and reacted by purchasing the shares.Thus, in October, the amount of shares exchanged in the market increased largely after this business decision.The volume exchanged increased from below 1 million to more than 3 million shares some days.Have a look at the following chart and note the growing volume. We will explain the behavior of the share price in just a minute. 2 months chart for TTSIEntering the Drone SectorOn October 23, 2017, the company signed an agreement to acquire assets to develop the new business model. The following is the list of assets acquired. Please note that the company acquired know-how and trade secrets, which we believe is significant:

"Assets owned by Inventors relating to Inventor’s development, sales, marketing and distribution of Unmanned Ariel Vehicles (“UAV” or “Drones”) including but not limited to patents, trademarks, know-how, trade secrets, supply lists and other assets and intellectual property of any kind, relating directly or indirectly to the manufacturing, sales and distribution of the Drones." Source

On October 23, 2017, we could also see that the company elected a new CEO and a new CFO. We believe that new people were needed, as the business model had changed. The new executives hold expertise and knowledge of the new business, which we appreciate.The CEO, Thomas Li, is a graduate of Tsinghua University and is specialized in structural engineering and performance engineering. He is the co-inventor of all assets acquired by TTSI.Additionally, the CFO, Mr. Nathan Xian, is a graduate of Tsinghua University as well and has been involved since 2012 in the development of proprietary technology relating to Unmanned Aerial Vehicles.How were new assets paid? The new assets were paid using 60,000,000 TACC shares. This explains the share price decline in November. In our opinion, we need to focus on the growing business model that the company is entering now. We believe that the future growth of the company will offset the share dilution.After the transaction, the company has a total of 82 million shares of common stock issued and outstanding.ProductsTactical Services, Inc. is specialized in "medium-sized, extended-duration unarmed aerial vehicles (UAVs) for surveillance, electronic information gathering, radio relaying, and target detection."The business strategy consists of filling the gap in the UAV market between expensive, high-operating-cost drones with weapon and surveillance capabilities and small, short-range "copter-style." We believe that it is a brilliant business decision.The following are different products that will be offered:

• U300: Tactically, smallest UAV has a wingspan of 2.96 meters and an optimal flight altitude of 3,000 feet and is designed for primary missions of visual surveillance, radio operations, and laser targeting.
• U500: Tactically, medium UAV has a wingspan of 5.15 meters and an optimal flight altitude of 5,000 feet and is designed for primary missions of visual surveillance, radio operations, laser targeting, and weather analysis.
• U700: Tactically, medium UAV has a wingspan of 7.0 meters and an optimal flight altitude of 5,000 feet and is designed for primary missions of visual surveillance, radio operations, laser targeting, weather analysis, and underwater detection.
• U900: Tactically, large UAV has a wingspan of 9.25 meters and an optimal flight altitude of 10000 and is designed for multiple primary missions of visual surveillance, radio operations, laser targeting, weather analysis and underwater detection.

Recent AnnouncementsThe company released new information about the new business venture in November.On November 6, 2017, the company noted the change of the ticker name to TTSI as well as a 100-for-1 forward stock split as part of its recently completed acquisition of unmanned aerial vehicle (UAV or drone) technologies and assets. We appreciate the new developments. They show that the company is finally changing control and making corporate moves to reflect the new business activity. This is the right direction in order to present the company to the market.On November 7, 2017, the company provided more information about the new business strategy. Thomas Li, co-founder and President of Tactical Services, Inc., noted that the company is well positioned to benefit from this new fast-growth industry. He was quoted:

"With very high endurance UAVs with current flight times pushing 50 plus hours non-stop, and quick and cost-effective deployment, under 30 minutes with 2 persons, Tactical Services is well positioned to establish itself as a technology and service leader in this extremely exciting and fast-growth industry." Source

Additionally, we could read something new about the company's facilities. Two "proving grounds" for flight experimentation, testing and demonstrations are being used in Guangzhou, China, and Tillamook, Oregon.The Company utilizes two "proving grounds" for flight experimentation, testing, and demonstrations; one near Guangzhou, China, and the other near Tillamook, Oregon.On November 14, 2017, the company released a new business update. The most interesting was the presentation of the two founding partners, which we have previously discussed. Additionally, the following words of Thomas Li, President and CEO of the company, were included. Please be sure to note the positive tone:

"With the assistance of our various partners, we will continue to build upon our advanced technology foundation and provide the very best extended flight UAV solutions available over a wide range of technical specifications and use profiles." Source

ConclusionCurrently trading with a market cap of $3.8 million, TTSI is an exciting story among small caps.The recent transaction has excited the market, but we believe that more announcements will be coming. In particular, we will need to very alert, as the new financial statements that will include the new assets acquired could make the market react strongly. Be very alert on this matter.To sum up, there are many catalysts on this name that could make market participants react.We will be updating our subscribers as soon as we know more. For the latest updates on TTSI, sign up below!Image courtesy of Andrew Turner via FlickrDisclosure: We have no position in TTSI and have not been compensated for this article.