Draganfly secures $2 million in funding through unit sale

SASKATOON - Draganfly Inc. (NASDAQ: NASDAQ:DPRO), a developer of drone solutions and systems, has entered into a securities purchase agreement with an institutional investor for the sale of approximately 16.7 million units at $0.12 each, totaling around $2 million in gross proceeds, before deductions for underwriting discounts and offering expenses. The agreement also includes warrants with an exercise price of about $0.15 (CA$0.2048) per share, exercisable immediately and valid for five years from the date of issuance.

The closing of the offering is expected to occur today, subject to standard closing conditions, including necessary regulatory approvals from the Canadian Securities Exchange and notification to the Nasdaq Stock Market. Draganfly plans to use the net proceeds for general corporate purposes, which include meeting demand for new products, growth initiatives, working capital needs, and the ongoing development and marketing of the company's core products. Potential acquisitions and research and development activities are also among the intended uses of the funds.

Maxim Group LLC is serving as the sole placement agent for this offering, which is being made pursuant to an effective shelf registration statement previously 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. The offering will only be made in the United States, and no securities will be sold to Canadian purchasers.

Prospective investors can obtain the prospectus supplement and accompanying Base Shelf Prospectus related to the offering, which detail the terms of the offering, from the SEC's website or by contacting Maxim Group LLC.

This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.

The information in this article is based on a press release statement.

In other recent news, Draganfly Inc. reported a substantial increase in its Q2 2024 earnings call, with organic revenue reaching $1.7 million, marking a 30% increase from the previous quarter. The company also noted a gross profit of $461,000. In addition to financial results, the earnings call highlighted significant company developments, such as board changes, new partnerships, and a focus on military applications, a sector that represents a $20 billion market opportunity.

The company welcomed three new board members, including Thomas Modly, former Under Secretary and Acting Secretary of the U.S. Navy. Draganfly has also been chosen by Mass General Brigham for drone delivery programs and has signed a distributor in Australia.

Despite a challenging market and a working capital deficit of $3.7 million, Draganfly maintains an optimistic outlook for future growth. The company expects to reach full production capacity by the end of 2024 and is actively addressing supply chain issues.

The company's CEO addressed bankruptcy concerns, stating the company is not at risk. He also discussed the potential for strategic alternatives such as mergers, but emphasized the current focus is on organic growth. These are the recent developments in Draganfly's operations.

InvestingPro Insights

As Draganfly Inc. (NASDAQ: DPRO) navigates its latest funding round, investors and market watchers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Draganfly holds a market cap of approximately $10.79 million USD. This is a critical figure that reflects the company's current valuation in the market and can provide investors with a sense of Draganfly's size relative to its peers.

InvestingPro Tips highlight two key aspects of Draganfly's financial situation. Firstly, the company holds more cash than debt on its balance sheet, which can be seen as a positive sign of financial stability. This suggests that Draganfly has maintained a level of liquidity that could support its operations and growth initiatives. Secondly, analysts anticipate sales growth in the current year, which indicates potential for revenue expansion and could be a positive signal for future performance.

Moreover, the recent price movements of Draganfly's stock have been quite volatile, as indicated by its high price volatility. This is an important consideration for investors who are evaluating the risk profile of the company's shares. For those looking to delve deeper into Draganfly's financials and market performance, InvestingPro offers additional insights and tips. There are 16 more InvestingPro Tips available for Draganfly, which can be accessed for comprehensive analysis and informed decision-making.

Investors can also note the company's P/E Ratio, which currently stands at -0.59. While negative P/E ratios can indicate a lack of profitability, they are also common among growth companies that are reinvesting earnings into expansion efforts. It's important for investors to consider this metric in the context of Draganfly's overall growth strategy and market potential.

These insights, along with further detailed analysis, can be found on the InvestingPro platform, which offers a robust set of tools and data for evaluating company performance and market trends.

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