Agricultural Drone Firm Avirtech Enmeshed in Post-Acquisition Disputes

• Agricultural drone firm Avirtech faces disputes after its acquisition by Terra Drone.
• Both ousted CEO Rendy The and current COO Wilson Ong allege misconduct against each other.
• The controversy threatens Terra Drone’s regional growth plans through its new precision agri division.

The allegations

Avirtech Group, an agricultural drone services provider acquired by Japan’s Terra Drone last year, is wracked by a dispute between ousted CEO Rendy Ferixsen The and current COO Wilson Ong over alleged misconduct.

He was terminated on December 15th for purportedly misappropriating corporate resources toward his personal drone venture, Kharisma Tech Indonesia (KTI).

Legal entanglements

However, lawyers for Avirtech Indonesia claim they voluntarily resigned weeks earlier upon discovering financial irregularities tied to Ong.

Both parties have filed police complaints in Indonesia, with the family alleging Ong committed violent theft of drone parts owned by the Indonesian entity.

Meanwhile, Ong accused The of embezzling around $1.2 million through unauthorized third-party deals.

Impact on Terra Drone’s plans

The controversy questions Terra Drone’s plans to integrate Avirtech’s Southeast Asia operations into a new precision agriculture division called Terra Drone Agri, which was announced after the 2022 acquisition.

Terra Drone faces challenges in untangling the ownership disputes to build shareholder trust and progress its regional growth strategy.