Draganfly sets price for $3.6 million public offering

Published 02/05/2025, 13:40
Draganfly sets price for $3.6 million public offering

SASKATOON - Draganfly Inc. (NASDAQ: DPRO), a developer of drone solutions and systems with a current market capitalization of $15.5 million, has announced the pricing of its underwritten public offering of 1,715,000 units at a public offering price of $2.10 per unit, aiming to raise approximately $3.6 million before underwriting discounts and offering expenses. Each unit includes one common share and a warrant to purchase an additional share at CA$3.9779 (US$2.875). According to InvestingPro data, the stock has shown strong momentum with a 30% return over the past six months, despite maintaining a weak overall financial health score.

The warrants are exercisable immediately and will expire five years from the date of issue. Draganfly has also granted the underwriter, Maxim Group LLC, a 45-day over-allotment option to purchase up to an additional 15 percent of the common shares and/or warrants offered. InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it’s currently experiencing rapid cash burn, making this offering particularly significant for its operations.

The net proceeds from the offering, which is expected to close on or about May 5, 2025, subject to customary closing conditions, are intended for general corporate purposes. This includes funding the company’s capabilities to meet demand for new products, growth initiatives, working capital requirements, and the continuing development and marketing of Draganfly’s core products. Potential acquisitions and research and development efforts are also targeted areas for the use of the proceeds. With analysts forecasting 90% revenue growth for fiscal year 2025, these funds could prove crucial for capitalizing on growth opportunities. For deeper insights into Draganfly’s growth potential and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.

This offering is made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC) and the Canadian short form base shelf prospectus. Securities in the offering will only be sold in the United States and are not being offered to Canadian purchasers.

Draganfly, a company with over 25 years of innovation in drone technology, provides solutions across various sectors including public safety, agriculture, industrial inspections, and surveying. The company is committed to delivering technology aimed at saving time, money, and lives.

The information for this article is based on a press release statement from Draganfly.

In other recent news, Draganfly Inc. has initiated a public offering in the United States, aiming to raise funds for general corporate purposes, including product demand, growth initiatives, and potential acquisitions. The offering is managed by Maxim Group LLC and is subject to regulatory approvals. Additionally, Draganfly has filed a report on Form 6-K with the U.S. Securities and Exchange Commission for May 2025, maintaining its commitment to ongoing financial disclosures. The company has also announced a strategic partnership with Autonome Labs to develop a drone-based demining system, enhancing safety and efficiency in landmine clearance. Furthermore, Draganfly has been selected by SafeLane Global Ltd. to supply drone technology for landmine clearance in Ukraine, aiming to improve safety in one of the world’s most mine-contaminated regions. In another partnership, Draganfly has been chosen as the primary drone supplier for Balko Technologies, integrating Balko’s LiDAR technology with Draganfly’s drones for enhanced industrial applications. These developments reflect Draganfly’s ongoing efforts to expand its technological capabilities and market presence.

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

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