Draganfly announces public offering to fund growth

Published 01/05/2025, 21:14
Draganfly announces public offering to fund growth

SASKATOON - Draganfly Inc. (NASDAQ: DPRO), a developer of drone solutions and systems with a current market capitalization of $15.6 million, has initiated a public offering in the United States, the company revealed today. According to InvestingPro data, the company’s overall financial health score is currently rated as weak, with rapidly declining cash reserves. The offering includes units of common shares and accompanying warrants, with Maxim Group LLC serving as the sole book-running manager.

The proceeds from this offering are earmarked for general corporate purposes. These include enhancing the company’s capacity to meet demand for its new products, funding growth initiatives, covering working capital needs, and supporting the continued development and marketing of Draganfly’s core offerings. With annual revenue of $4.56 million and an InvestingPro analysis showing the company is quickly burning through cash, the funds may also be allocated for potential acquisitions and research and development activities.

Completion of the offering hinges on market conditions and the satisfaction of customary closing conditions, including necessary regulatory approvals from the Canadian Securities Exchange and notification to The Nasdaq Stock Market. There is no certainty regarding the completion, size, or terms of the offering at this stage.

The offering is being made under an effective shelf registration statement previously declared by the U.S. Securities and Exchange Commission (SEC) on July 5, 2023, and the company’s Canadian short form base shelf prospectus dated June 30, 2023. It is important to note that the securities will be offered exclusively in the United States, with no offerings to Canadian purchasers.

Investors can access the preliminary prospectus supplement and accompanying base shelf prospectus, which detail the terms of the offering, through the SEC in the United States and the applicable securities commissions in Canada. The final terms will be disclosed in a final prospectus supplement to be filed with the regulatory authorities.

Draganfly, with over 25 years of innovation in drone technology, has been a significant player in providing solutions across various sectors such as public safety, agriculture, and industrial inspections.

As with all public offerings, potential investors are advised to consult the offering documents and consider the company’s continuous disclosure documents before making investment decisions. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. The information presented is based on a press release statement from Draganfly Inc.

In other recent news, Draganfly Inc. reported a notable financial performance for Q4 2024, with revenue surging 76% year-over-year to $1.61 million. The company also managed to narrow its comprehensive loss to $14.06 million from $23.7 million the previous year, highlighting effective cost management. Draganfly has entered into a strategic agreement with Autonome Labs to develop a drone-based demining system, integrating its Heavy Lift drone with Autonome’s M.A.G.I.C. system. Additionally, Draganfly has been selected by SafeLane Global Ltd. to provide unmanned aerial systems for landmine clearance in Ukraine, enhancing safety and efficiency in one of the most mine-contaminated countries. The company has also been chosen as the primary drone supplier for Balko Technologies, following successful integration of Balko’s LiDAR technology with Draganfly’s UAS models. Draganfly’s recent SEC Form 6-K filing for May 2025 reaffirms its commitment to fulfilling U.S. securities laws reporting obligations. These developments underscore Draganfly’s ongoing efforts to expand its market presence and enhance its technological offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.