Draganfly Inc. raises $3.76 million by closing a 1.6 million unit offering, funding corporate growth and product development.
Quiver AI Summary
Draganfly Inc. has successfully closed an offering of 1,600,000 units, raising gross proceeds of approximately $3.76 million. Each unit includes one common share and one warrant, priced at $2.35 per unit. The warrants can be exercised at a price of CA$3.3086 per share for five years. Additionally, the company has amended the exercise price of its existing warrants from previous offerings to align with the new pricing. Proceeds from this offering will be utilized for general corporate purposes, including product development, marketing, potential acquisitions, and research initiatives. The offering was conducted in the U.S. under a previously effective registration statement, and details are available through regulatory filings.
Potential Positives
- Draganfly successfully closed an offering of 1,600,000 units, raising gross proceeds of US$3.76 million, which can enhance its financial position.
- The exercise price of existing warrants was reduced to CA$3.3086 (or US$2.35), making it easier for current warrant holders to exercise their options and potentially increase the company's shares outstanding.
- The funds raised are earmarked for funding growth initiatives, product development, and marketing efforts, positioning the company for future expansion and demand fulfillment.
Potential Negatives
- The company's dependence on issuing new units and the subsequent amendment of existing warrant prices indicates potential financial instability and a lack of investor confidence.
- The reduction of exercise prices for existing warrants could dilute the value of current shares, which may concern existing investors.
- The press release extensively discusses financial maneuvers rather than highlighting new product innovations or positive company developments, which may suggest a lack of strong advancements in their core business operations.
FAQ
What is the total amount raised in Draganfly's latest offering?
Draganfly raised gross proceeds of US$3.76 million from the offering of 1,600,000 units.
Who acted as the placement agent for the offering?
Maxim Group LLC served as the sole placement agent for the offering.
What are the exercise prices of the existing warrants?
The exercise price for the existing warrants was reduced to CA$3.3086 (or US$2.35) per share.
How will Draganfly use the proceeds from the offering?
The proceeds will fund general corporate purposes, including product development, acquisitions, and marketing efforts.
Is the offering available to Canadian purchasers?
No, the offering was made in the United States only; no securities were sold to Canadian purchasers.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$DPRO Hedge Fund Activity
We have seen 2 institutional investors add shares of $DPRO stock to their portfolio, and 34 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARMISTICE CAPITAL, LLC removed 6,473,000 shares (-100.0%) from their portfolio in Q3 2024
- RENAISSANCE TECHNOLOGIES LLC removed 402,910 shares (-100.0%) from their portfolio in Q2 2024
- CITADEL ADVISORS LLC removed 165,125 shares (-100.0%) from their portfolio in Q2 2024
- WARBERG ASSET MANAGEMENT LLC removed 139,568 shares (-100.0%) from their portfolio in Q2 2024
- ALLIANCE WEALTH ADVISORS, LLC removed 103,000 shares (-100.0%) from their portfolio in Q3 2024
- TORNO CAPITAL, LLC removed 100,000 shares (-100.0%) from their portfolio in Q2 2024
- THOROUGHBRED FINANCIAL SERVICES, LLC removed 60,000 shares (-100.0%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Saskatoon, SK., Nov. 19, 2024 (GLOBE NEWSWIRE) --
Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) ("Draganfly" or the "Company"), a drone solutions, and systems developer, today announced that it has closed its previously announced offering of 1,600,000 units of the Company, with each unit consisting of one common share (or one pre-funded warrant to purchase one common share in lieu thereof) and one warrant to purchase one common share. Each unit was sold at an offering price of US$2.35, for gross proceeds of US$3.76 million (the "Offering"), before deducting placement agent discounts and offering expenses. The warrants have an exercise price of CA$3.3086 (or US$2.35) per share, are exercisable immediately and will expire five years following the date of issuance and the exercise price is in Canadian currency.
Maxim Group LLC acted as sole placement agent for the Offering.
Pursuant to previous offerings in the United States, the Company issued warrants to purchase 256,000 common shares at an exercise price of CA$5.6925 (US$4.1152) on October 30, 2023 ("October Warrants"), warrants to purchase 540,541 common shares at an exercise price of CA$5.625 (US$4.1155) on May 1, 2024 (the "May Warrants") and warrants to purchase 666,667 common shares at an exercise price of CA$5.12 (US$3.75) on August 21, 2024 (the "August Warrants", collectively with the October Warrants and May Warrants, the "Existing Warrants"). In connection with the closing of the Offering, the Company and the holder of the Existing Warrants entered into an amendment agreement (the "Amendment Agreement"), whereby the exercise price of the Existing Warrants was reduced to CA$3.3086 (or US$2.35) per share, respectively (the "Warrant Amendments").
Draganfly currently intends to use the net proceeds from the Offering for general corporate purposes, including to fund its capabilities to meet demand for its new products including growth initiatives and/or for working capital requirements including the continuing development and marketing of the Company's core products, potential acquisitions and research and development.
The Offering was made pursuant to an effective shelf registration statement on Form F-10, as amended, (File No. 333-271498) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission ("SEC") on July 5, 2023 and the Company's Canadian short form base shelf prospectus dated June 30, 2023 (the "Base Shelf Prospectus"). Draganfly offered and sold the securities in the United States only. No securities were offered or sold to Canadian purchasers.
A prospectus supplement and accompanying Base Shelf Prospectus relating to the Offering and describing the terms thereof was filed with the applicable securities commissions in Canada and with the SEC in the United States and is available for free by visiting the Company's profiles on the SEDAR+ website maintained by the Canadian Securities Administrators at
or the SEC's website at
www.sec.gov
, as applicable. Copies of the prospectus supplement and accompanying Base Shelf Prospectus relating to the Offering may be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16
th
Floor, New York, NY 10022, Attention: Syndicate Department, or by telephone at (212) 895-3745 or by email at
syndicate@maximgrp.com
.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8A) is the creator of drone solutions, software, and AI systems.
Media Contact
Erika Racicot
email:
media@draganfly.com
Company Contact
Email:
info@draganfly.com
Forward Looking Statements
Certain statements contained in this news release may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements, based as they are on the current expectations of management, inherently involve numerous important risks, uncertainties and assumptions, known and unknown. In this news release, such forward-looking statements include, but are not limited to, statements regarding the anticipated use of proceeds from the Offering. Actual future events may differ from the anticipated events expressed in such forward-looking statements. Draganfly believes that expectations represented by forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These forward-looking statements speak only as of the date made, and Draganfly is under no obligation and disavows any intention to update publicly or revise such statements as a result of any new information, future event, circumstances or otherwise, unless required by applicable securities laws. Investors are cautioned not to unduly rely on these forward-looking statements and are encouraged to read the offering documents, as well as Draganfly's continuous disclosure documents, including its current annual information form, as well as its audited annual consolidated financial statements which are available on SEDAR+ at
and on EDGAR at
www.sec.gov/edgar
.
