Draganfly Inc. Announces Public Offering of 5.5 Million Units, Raising Significant Capital
In the rapidly evolving world of drone technology, Draganfly Inc., a prominent player known for its innovative solutions, has made a significant financial move. The company has recently announced the pricing of its public offering, which involves the sale of 5,500,000 units. Each unit comprises one common share and one warrant, providing an exciting opportunity for investors looking to tap into the drone industry. This initiative is expected to generate gross proceeds of approximately $13.75 million before any deductions for placement agent discounts and other offering-related expenses.
The units are being offered at a price of $2.50 each, and the warrants, which are essentially options to buy additional shares, come with an exercise price set at CA$5.0768 or US$3.71 per share. These warrants are immediately exercisable and will remain valid for five years from the date of issuance, giving investors a substantial period to leverage potential market gains.
Maxim Group LLC: The Sole Placement Agent
The financial maneuver is being facilitated by Maxim Group LLC, serving as the sole placement agent for this offering. This partnership marks a crucial step in ensuring that Draganfly’s offering reaches the right investors and meets the intended financial goals. The role of a placement agent is essential in such scenarios as it involves marketing the securities and managing the logistics of the offering process.
Utilization of the Proceeds
Draganfly has outlined its intentions for the net proceeds, which include using the funds for general corporate purposes. More specifically, the company plans to enhance its capabilities to meet the growing demand for its new products. This includes funding growth initiatives, supporting working capital requirements, and continuing the development and marketing of their core products. The proceeds may also be used for potential acquisitions and furthering research and development, ensuring the company stays at the forefront of technological advancements in the drone industry.
Closing Conditions and Regulatory Approvals
The completion of this public offering is anticipated to occur around June 12, 2025, subject to several customary closing conditions. These include obtaining all necessary regulatory approvals, particularly from the Canadian Securities Exchange and notification to the Nasdaq Stock Market. Such regulatory approvals are crucial to ensure compliance with financial regulations and to protect investors’ interests.
Registration and Prospectus Details
The offering is being conducted under an effective shelf registration statement on Form F-10, which was previously filed with and approved by the U.S. Securities and Exchange Commission (SEC) on July 5, 2023. Additionally, Draganfly’s Canadian short form base shelf prospectus dated June 30, 2023, serves as another foundational document for this offering. It’s important to note that Draganfly will offer and sell these securities exclusively in the United States, with no securities available for Canadian purchasers.
For those interested in the detailed terms of the offering, a preliminary prospectus supplement, along with the base shelf prospectus, has been filed with the relevant securities commissions in Canada and the SEC in the United States. This documentation is accessible for free on the SEDAR+ website, maintained by the Canadian Securities Administrators, or through the SEC’s website.
Not an Offer to Sell
It’s crucial to emphasize that this announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities. The sale of these securities will not occur in any jurisdiction where such an offer, solicitation, or sale would be deemed unlawful prior to the registration or qualification under the relevant securities laws.
About Draganfly Inc.
Draganfly Inc., traded under the tickers NASDAQ: DPRO, CSE: DPRO, and FSE: 3U8A, is a leader in the field of drone solutions, AI-driven software, and robotics. With a legacy of over 25 years of innovation, the company has been a pioneer in providing cutting-edge technology solutions across various sectors. These include public safety, agriculture, industrial inspections, security, mapping, and surveying. Draganfly’s commitment to delivering efficient, reliable, and industry-leading technology has helped organizations save time, money, and lives.
Forward-Looking Statements
It’s important for investors to be aware that certain statements in this announcement may qualify as “forward-looking statements” or “forward-looking information” under applicable securities laws. These statements are based on current management expectations and involve various risks, uncertainties, and assumptions, some of which are unknown. Such forward-looking statements include details about the timing, size, and expected gross proceeds of the offering, as well as the satisfaction of customary closing conditions.
While Draganfly believes that the expectations represented by these statements are reasonable, there is no guarantee that they will be met. Various factors, many beyond the company’s control, could influence the actual outcome. Investors are advised not to rely excessively on these forward-looking statements and to consult the offering documents and Draganfly’s continuous disclosure documents, including its annual information form and audited annual consolidated financial statements. These documents are available on SEDAR+ and EDGAR for further insights into the company’s financial health and strategic directions.
Conclusion
Draganfly Inc.’s public offering represents a significant milestone in the company’s growth trajectory. By raising substantial capital, Draganfly aims to strengthen its position in the drone technology market, continue its legacy of innovation, and meet the increasing demand for its products. As the offering progresses, it will be interesting to observe how the company leverages these funds to achieve its strategic objectives and deliver value to its shareholders.
For more detailed information and to access the official documents, interested parties can visit the SEDAR+ website or the SEC’s website. Draganfly remains committed to transparency and compliance, ensuring a secure and informed investment process for all stakeholders involved.
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