Draganfly secures $3.5M unit offering Investing.com

SASKATOON, SASKATOON – Draganfly Inc. (NASDAQ: NASDAQ: ), a developer of drone solutions and systems, has announced an agreement with an institutional investor to purchase the company Approximately 13.5 million shares, each consisting of one common share or pre-financing stock warrant, plus a warrant to purchase one common share. The units are priced at $0.259 per unit, with a total value of approximately $3.5 million before underwriting discounts and fees.

The warrants are immediately exercisable, expire five years from the date of issuance, and are priced at $0.259, expressed in Canadian currency. Maxim Group LLC is the exclusive placement agent for the offering. At the same time, the company has reached an agreement to amend the terms of the previously issued warrants starting in October, adjusting the exercise price to $0.259 and eliminating the cashless exercise option.

The offering is expected to close on or about May 1, 2024, subject to customary closing conditions and regulatory approvals, including approval by the Canadian Securities Exchange and notification to the Nasdaq Stock Market.

Draganfly intends to allocate net proceeds for general corporate purposes, which may include funding growth initiatives, working capital needs, potential acquisitions and research and development of the company's core products.

The offering is being made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission and the company's Canadian short form base shelf prospectus. The securities will be offered and sold only in the United States and will not be sold to Canadian buyers. Details of the offering will be available on SEDAR+ and the SEC's websites upon filing of the prospectus supplement and accompanying base shelf prospectus.

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This press release is based on press release statements and does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be made. Illegal before registration or qualification.

Investment Professional Insights

Draganfly Inc. (NASDAQ: DPRO ) is adopting its latest financial strategy, reaching out to institutional investors and amending the terms of previously issued warrants, and it's important to understand the company's current financial position and market performance.

Draganfly's market capitalization is $16.72 million, reflecting the market's valuation of the company, according to InvestingPro. While analysts expect sales to grow this year, Draganfly's revenue has declined, with a change of -13.81% in the trailing twelve months to the fourth quarter of 2023.

InvestingPro Tips highlights that Draganfly holds more cash than debt on its balance sheet, which is a positive sign for potential investors concerned about the company's liquidity. Still, the company is burning through cash quickly, which may be a caution for those considering the stock.

With a price-to-book ratio of 55.19 as of the fourth quarter of 2023, Draganfly's shares trade at a premium to its book value, which could impact investment decisions. Additionally, the share price has experienced significant volatility, with a return of 36.39% last month, but a return of -73.22% over the last year to April 2024.

For investors and analysts looking to gain a deeper understanding of Draganfly's prospects, additional InvestingPro Tips are available, which provide detailed analysis and forecasts.Use coupon code PRONEWS24, readers can receive an additional 10% discount when subscribing to Pro and Pro+ annually or every two years, gaining access to rich financial data and insights to inform their investment strategies. With these resources, including the 15 additional tips listed in InvestingPro for Draganfly, investors can make more informed decisions based on their financial goals.

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