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NEW YORK - Drone solutions developer Draganfly Inc. (NASDAQ:DPRO) (CSE:DPRO), currently valued at $80 million in market capitalization, announced Monday it has closed its previously announced registered direct offering, raising approximately $25 million in gross proceeds. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.
The offering consisted of 4,672,895 units priced at $5.35 per unit. Each unit includes one common share and one warrant exercisable at CA$7.3579 per share, with the warrants valid for five years from issuance.
Maxim Group LLC served as the sole placement agent for the transaction.
Draganfly plans to use the net proceeds for general corporate purposes, including funding capabilities to meet demand for new products, growth initiatives, working capital requirements, continuing development and marketing of core products, potential acquisitions, and research and development. With analysts forecasting 63% revenue growth for FY2025, these funds could prove crucial for the company’s expansion plans. For deeper insights into Draganfly’s growth potential and financial health, check out the comprehensive analysis available on InvestingPro, which offers 12 additional exclusive ProTips for this stock.
The offering was conducted pursuant to Draganfly’s effective shelf registration statement on Form F-10 declared effective by the U.S. Securities and Exchange Commission on July 5, 2023, and the company’s Canadian short form base shelf prospectus dated June 30, 2023. Securities were offered and sold in the United States only, with no sales to Canadian purchasers.
Draganfly, which has been developing drone technology for over 25 years, specializes in AI-driven software and robotics solutions for various sectors including public safety, agriculture, industrial inspections, security, mapping, and surveying.
The information in this article is based on a company press release statement.
In other recent news, Draganfly Inc. announced a $25 million private placement financing through a securities purchase agreement with institutional investors. The company plans to use the proceeds for general corporate purposes, including funding new products and growth initiatives. Additionally, Draganfly priced a $13.75 million public offering at $2.50 per unit, with each unit comprising one common share and a warrant. The funds from this offering are also earmarked for corporate purposes like product development and potential acquisitions.
H.C. Wainwright recently adjusted its price target for Draganfly, initially lowering it to $3.50 from $5.00 due to slow revenue growth, but later raising it to $6.00 following a selection by a U.S. Department of Defense branch for advanced operation initiatives. The firm maintains a Buy rating on the stock, citing potential for larger defense contracts. Draganfly’s Commander 3XL drone, integrated with TB2 Aerospace’s recharging system, achieved a 100% success rate during a U.S. Army experiment, showcasing its potential in military logistics.
Draganfly’s recent developments include a pilot program with the Cochise County Sheriff and delivery of systems to a major U.S. defense contractor. The company is also expected to benefit from increased global defense spending, as noted by H.C. Wainwright. These initiatives highlight Draganfly’s ongoing efforts to expand its presence in the defense sector.
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