Roger Lipton

- BT Brands, Inc. and Aero Velocity Inc. have entered into a **definitive merger agreement** in an **all-stock transaction**, dated **September 2, 2025**.  **[1718224_0001477932-25-006486_btbd_ex991.htm:0]** **[1718224_0001477932-25-006486_btbd_ex21.htm:0]** **[1718224_0001477932-25-006486_btbd_8k.htm:1]** **[1718224_0001477932-25-006486_btbd_ex21.htm:2]** 
- The combined company will focus on **advanced drone technologies** and **AI-powered solutions** for government and commercial applications, with Aero Velocity providing comprehensive drone services, including a Drones-as-a-Service (DaaS) model, industrial inspections, and developing a contract drone manufacturing business.  **[1718224_0001477932-25-006486_btbd_ex991.htm:0]** **[1718224_0001477932-25-006486_btbd_8k.htm:1]** 
- Upon the closing of the proposed transactions, Aero Velocity's stockholders are expected to own approximately **89%** of the combined company, and existing BT Brands stockholders are expected to own approximately **11%** on a fully diluted economic basis.  **[1718224_0001477932-25-006486_btbd_ex991.htm:0]** **[1718224_0001477932-25-006486_btbd_8k.htm:1]** 
- The transaction also calls for an equity investment in the combined company of not less than **$3 million** and up to **$5 million** by Aero Velocity shareholders.  **[1718224_0001477932-25-006486_btbd_ex991.htm:0]** **[1718224_0001477932-25-006486_btbd_8k.htm:1]**

BT Brands (BTBD)