Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Draganfly Inc. (NASDAQ:DPRO) stock plunged 27% after the drone solutions company announced the pricing of a $25 million registered direct offering.
The company entered into a securities purchase agreement with several institutional investors to purchase 4,672,895 units at a price of $5.35 per unit. Each unit consists of one common share and one common share purchase warrant, with the warrants exercisable immediately at CA$7.3579 (equivalent to US$5.35) per common share and set to expire five years after issuance.
Maxim Group LLC is acting as the sole placement agent for the offering, which is expected to close around July 21, 2025, subject to customary closing conditions.
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.
The significant stock decline reflects investor reaction to the offering price of $5.35 per unit, which represents a substantial discount to the previous closing price of $7.22, potentially diluting existing shareholders’ value.
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