Alpine 4 Technologies Ltd (OTCQB:ALPP) said founder of its recently acquired drone group Impossible Aerospace (IA) Spencer Gore had welcomed the US government's move to blacklist Chinese drone maker DJI.
DJI represents between 70 and 80% of the commercial drone market so this creates vast opportunities for American firms like Impossible Aerospace (IA), the Phoenix, Arizona based tech holding company suggested.
Shares in Alpine 4 Technologies flew up over 33% in New York to $1.60 on the day.
READ: Alpine 4 Technologies announces creation of two drone subsidiaries to reside in its A4 Technology portfolio
"Chinese-made drones are still used at all levels of government in the United States. For example, at least 924 law enforcement agencies around the United States own DJI drones as of 2020 -- products which have been unequivocally banned by the Department of Defense, Department of Interior and Department of Justice," said Gore in a statement.
"These law enforcement agencies will now need an alternative to stay compliant. American companies stand ready to provide it."
The US Department of Commerce has added DJI to the "Entity List" of Chinese companies prohibited from the procurement of advanced American technology.
Earlier this month, Alpine 4 completed its acquisition of Impossible Aerospace Corporation (IA), which builds high-performance electric aircraft. Both companies intend to build the nation's most vertically integrated UAV (unmanned aerial vehicle) manufacturer.
Gore added on Monday: "American drone companies, for the first time ever, will now have the playing field tilted to their advantage to build a robust and resilient domestic capability.
"They have the benefit of advanced, uniquely American technology: the world's best microprocessors, advanced thermal cameras, graphics chips and machine learning hardware.
"We are expanding aggressively to provide the market with next-generation unmanned systems at many price points and for many use cases. Alpine 4's acquisition of Impossible Aerospace was only the first step in this initiative. News to be revealed over the next year will show the intensity and scale of our aim: to become the largest manufacturer of small UAS in North America."
Kent Wilson, CEO of Alpine 4 also noted: "Even with their inferior airframes and flight times, DJI's market ownership of the commercial drone space was forecasted to continue its dominance for years to come. This new event completely opens up billions of dollars in the global market for the US-1 and its future variants to dominate the market."
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