Draganfly Announces Additional Exercise Of Over-Allotment Option

Rhea-AI Summary

Draganfly announced that Maxim Group LLC has partially exercised their over-allotment option to purchase an additional 100,000 common shares at US$2.09 per share, generating US$209,000 in gross proceeds. This follows the company's US$3.6 million underwritten public offering that closed on May 5, 2025. The net proceeds will be used for general corporate purposes, including funding capabilities for new products, growth initiatives, working capital, core product development and marketing, potential acquisitions, and R&D. The offering was made through an effective shelf registration and was only available to U.S. investors, with no securities offered to Canadian purchasers.

Positive

• Additional capital raise of US$209,000 through over-allotment exercise
• Funds will support growth initiatives and product development
• Successful completion of recent US$3.6M public offering

Negative

• Additional share issuance may lead to dilution for existing shareholders

Insights

Investment Banking Analyst

Draganfly secured additional $209K from over-allotment option exercise, expanding its recent $3.6M offering for growth initiatives.

Draganfly has secured an additional $209,000 in gross proceeds through the partial exercise of an over-allotment option by its underwriter, Maxim Group. This transaction, priced at $2.09 per share for 100,000 additional common shares, supplements the company's $3.6 million underwritten public offering that closed on May 5th.

The capital injection, while modest compared to the original offering, indicates some level of market demand for Draganfly's equity. The company has designated these funds for general corporate purposes, including supporting growth initiatives, working capital requirements, product development, marketing efforts, and potential acquisition opportunities.

This capital raising activity follows standard regulatory procedures, with filings made to both U.S. and Canadian securities authorities. Notably, the offering was restricted to U.S. investors only, with no shares sold to Canadian purchasers despite Draganfly's dual listing status.

For a drone solutions company operating in the highly competitive and capital-intensive technology sector, this additional funding provides incremental financial flexibility. However, investors should note that equity raises typically come with dilution for existing shareholders, as the additional shares reduce proportional ownership.

Saskatoon, SK., June 06, 2025 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), a drone solutions, and systems developer, today announced that further to the closing of the Company’s US$3.6 million underwritten public offering on May 5, 2025 (the “Offering”), Maxim Group LLC, as underwriter and sole book-running manager, has partially exercised their over-allotment option to purchase an additional 100,000 common shares at the price of US$2.09 per share for aggregate gross proceeds of US$209,000 prior to deducting underwriter discounts and commissions.

As previously announced, Draganfly 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 final prospectus supplement and accompanying Base Shelf Prospectus relating to the Offering and describing the terms thereof has been filed with the applicable securities commissions in the Canadian provinces of British Columbia, Saskatchewan and Ontario, 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 www.sedarplus.ca or the SEC’s website at www.sec.gov, as applicable. Copies of the final prospectus supplements and accompanying Base Shelf Prospectus relating to the Offering may be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16th 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 a pioneer in drone solutions, AI-driven software, and robotics. With over 25 years of innovation, Draganfly has been at the forefront of drone technology, providing solutions for public safety, agriculture, industrial inspections, security, mapping, and surveying. The Company is committed to delivering efficient, reliable, and industry-leading technology that helps organizations save time, money, and lives.

Media Contact
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 intended use of proceeds of 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 www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.

FAQ

What is the purpose of Draganfly's (DPRO) over-allotment exercise?

The over-allotment exercise allows Maxim Group LLC to purchase an additional 100,000 shares at US$2.09 per share, generating US$209,000 in gross proceeds for general corporate purposes, product development, and growth initiatives.

How much did Draganfly (DPRO) raise in their May 2025 public offering?

Draganfly raised US$3.6 million in their underwritten public offering that closed on May 5, 2025, followed by an additional US$209,000 from the over-allotment exercise.

What is the price per share for DPRO's over-allotment shares?

The over-allotment shares were priced at US$2.09 per share.

How will Draganfly (DPRO) use the proceeds from the offering?

The proceeds will be used for general corporate purposes, funding new product capabilities, growth initiatives, working capital, core product development, marketing, potential acquisitions, and R&D.

Who managed Draganfly's (DPRO) public offering?

Maxim Group LLC served as the underwriter and sole book-running manager for the offering.