Draganfly Inc. Secures $25 Million Funding for Growth Initiatives and Product Development

Draganfly Inc. has closed a registered direct offering, raising approximately $25 million by selling 4,672,895 units at $5.35 each. Each unit includes one common share and one warrant. The funds will be used for general corporate purposes, including product development, marketing, potential acquisitions, and working capital. Maxim Group LLC acted as the placement agent for the offering.

Draganfly Inc. (NASDAQ: DPRO) has successfully closed a registered direct offering, raising approximately $25 million by selling 4,672,895 units at $5.35 each. Each unit includes one common share and one warrant, which allows the purchase of an additional common share at an exercise price of CA$7.3579. The funds will be used for general corporate purposes, including product development, marketing, potential acquisitions, and working capital [1].

Maxim Group LLC acted as the sole placement agent for the offering, which was made under an effective shelf registration statement with the SEC and targeted U.S. investors, excluding Canadian purchasers [1].

The offering provides Draganfly with significant financial resources to support its corporate growth initiatives. The inclusion of warrants in each unit may increase investor confidence and provide additional funding options in the future. The funds will be earmarked for general corporate purposes, including the development and marketing of new products, which may enhance the company's future market position and revenue potential [1].

However, the offering may also have potential drawbacks. The issuance of additional shares through the offering could dilute existing shareholders' equity. Additionally, the reliance on the offering proceeds for general corporate purposes may indicate financial instability or the inability to generate sufficient revenue internally. Furthermore, the restriction on the offering to U.S. purchasers only may limit the potential investor base and reduce overall demand for the securities [1].

Draganfly plans to use the net proceeds from the offering to fund its capabilities to meet demand for its new products, including growth initiatives and working capital requirements. The company has previously stated its intention to use the funds for the continuing development and marketing of its core products, potential acquisitions, and research and development [1].

Investors are encouraged to review the company's prospectus and other disclosures for more detailed information. The prospectus and offering documents are available on SEDAR+ and the SEC websites, or by contacting Maxim Group LLC directly [1].

References:
[1] https://www.quiverquant.com/news/Draganfly+Inc.+Closes+%2425+Million+Registered+Direct+Offering+to+Fund+Growth+Initiatives+and+Product+Development