Gravenhurst, Ontario--(Newsfile Corp. - July 28, 2026) - Lake Central Air Services ("LCAS" or the "Company"), the Transport Canada Approved Maintenance Organization based at Muskoka Airport (CYQA), today announced that it has acquired Coastal Defence Systems Inc. ("Coastal" or "CDSI"), Canada's only Indigenous-owned security and defence drone company. The combined business will operate as Valkyrie Aerospace Corp. ("Valkyrie"), a sovereign Canadian defence aerospace company uniting certified aerospace engineering, domestic uncrewed-aerial-vehicle (UAV) production, and AI-enabled defence systems under a single platform.
The combination brings together two complementary capabilities. LCAS - founded at Muskoka Airport in 1975 - is a Transport Canada Approved Maintenance Organization with more than 50 years of operating history, over 90 Supplemental Type Certificates recognized across nine international airworthiness authorities, a 31,000-square-foot certified facility, and a global leadership position in airborne geophysical survey aircraft modification. Coastal contributes its Thunder Class UAV platform, including the TH-MX150 heavy loitering munition, membership in the Defence Innovation Accelerator for the North Atlantic (DIANA), participation in the Yukon Arctic Security Advisory Council, and certification under the federal Procurement Strategy for Indigenous Business (PSIB).
As Valkyrie, the Company intends to transfer full UAV production - composite fabrication, CNC machining, avionics and harness assembly, and quality control - to its certified facility at Muskoka Airport, leveraging LCAS's existing composite and machining infrastructure rather than relying on imported systems. The Company believes the result is the only Canadian platform uniting a certified maintenance organization, sovereign UAV manufacturing, strike and airborne mine-detection capability, geophysical survey expertise, and an Indigenous defence partner.
The combination is positioned against Canada's Defence Industrial Strategy, which prioritizes domestic procurement - including a stated commitment to direct 70% of federal defence contracts to Canadian firms within a decade - alongside the federal government's intent to invest more than $500 billion in defence over the coming decade.
"Lake Central has spent fifty years quietly building one of the most capable certified aerospace shops in the country," said Sruli Weinreb, President and Chief Executive Officer of Lake Central Air Services. "Acquiring Coastal lets us point that engineering at exactly the capability Canada is now urgently buying - sovereign drones, loitering munitions, and airborne detection - and bring it together under one company, Valkyrie Aerospace. This is Canadian engineering, Canadian manufacturing, and Indigenous-led innovation on the same Muskoka airfield."
"Coastal set out to prove that a sovereign, Indigenous-owned defence company could build serious systems for serious threats," said William Fleming, Chief Executive Officer of Coastal Defence Systems Inc., who will lead Valkyrie Aerospace Corp. "Combining with Lake Central gives our Thunder Class platform a certified engineering and manufacturing home and a clear path to scale. As Valkyrie, we can deliver sovereign capability at the pace this moment demands while advancing Indigenous participation in Canada's defence industrial base."
"For fifty years, on the same ground where more than 3,300 Allied pilots trained at Camp Little Norway, our team has certified airborne sensor systems for the world's survey fleets," said Jim Hodgson, Chief Operating Officer. "The same discipline now turns to defence. The ground hasn't changed and neither has the mission - only the century."
Valkyrie intends to pursue a public listing on a Canadian stock exchange. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
About Lake Central Air Services
Lake Central Air Services is a Transport Canada Approved Maintenance Organization founded in 1975 and based at Muskoka Airport (CYQA) in Gravenhurst, Ontario - the site of the historic Camp Little Norway, a National Historic Site of Canada. With more than 50 years of certified operations, over 90 Supplemental Type Certificates recognized across nine international airworthiness authorities, and a 31,000-square-foot certified facility, Lake Central offers fullstack aircraft design, modification, parts manufacturing, and sensor integration, and is a recognized world leader in airborne geophysical survey aircraft modification. Following its acquisition of Coastal Defence Systems Inc., the combined business operates as Valkyrie Aerospace Corp.
About Coastal Defence Systems Inc.
Coastal Defence Systems Inc. is Canada's only Indigenous-owned security and defence drone company, developing proprietary drone armament, surveillance, and AI capabilities. Its Thunder Class platform includes the TH-MX150 heavy loitering munition. Coastal is a member of the Defence Innovation Accelerator for the North Atlantic (DIANA), participates in the Yukon Arctic Security Advisory Council, and is certified under the federal Procurement Strategy for Indigenous Business.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the anticipated benefits of the acquisition, the formation and strategy of Valkyrie Aerospace Corp., its intended public listing, planned UAV production, and alignment with Canadian defence procurement. Forward-looking information is based on assumptions and is subject to risks and uncertainties that could cause actual results to differ materially, including market and regulatory conditions and the Company's ability to execute its strategy. Valkyrie has not filed a prospectus with any Canadian securities regulatory authority, and this release does not constitute a public offering. The Company undertakes no obligation to update forward-looking information except as required by law.
For further information, please contact
Lake Central Air Services:
Trish Hackenbrook | Senior Administrator
trishh@lakecentral.com
Coastal Defence Systems Inc:
Bill Fleming | Chief Executive Officer
Email: info@coastaldefencesystems.ca
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Source: Lake Central Air Services
