Draganfly Announces Closing of US$25.0 Million Registered Direct Offering

Rhea-AI Summary

Draganfly (NASDAQ: DPRO), a drone solutions developer, has successfully closed its previously announced registered direct offering, raising US$25.0 million in gross proceeds. The offering consisted of 4,672,895 units priced at US$5.35 per unit, with each unit comprising one common share and one warrant.

The warrants are immediately exercisable at CA$7.3579 per share and will expire in five years. Maxim Group LLC served as the sole placement agent. The company plans to use the proceeds for general corporate purposes, including product development, marketing, potential acquisitions, and working capital requirements.

Positive

• Successfully raised US$25.0 million in gross proceeds through registered direct offering
• Warrants provide potential for additional future capital at CA$7.3579 per share
• Funds will support new product development, marketing initiatives, and potential acquisitions
• Offering was conducted under effective shelf registration, demonstrating regulatory compliance

Negative

• Offering will result in immediate dilution for existing shareholders
• Additional dilution possible if warrants are exercised in the future

Insights

Financial Analyst

Draganfly secured $25M funding, strengthening its balance sheet for growth initiatives, product development, and potential acquisitions.

Draganfly has successfully closed a $25 million registered direct offering, selling 4,672,895 units at $5.35 per unit. Each unit includes one common share plus one warrant exercisable at CA$7.3579 (US$5.35 equivalent) with a five-year expiration window. This funding structure provides immediate capital while creating potential for additional future investment through warrant exercises.

The capital raise significantly strengthens Draganfly's balance sheet, with proceeds earmarked for strategic priorities including: product development initiatives, marketing of core products, working capital requirements, and potential acquisitions. This financial flexibility comes at a critical time as the company appears to be positioning itself to meet growing demand for its drone solutions, software, and robotics offerings.

The offering was conducted exclusively in the U.S. market (no Canadian purchasers), with Maxim Group LLC serving as the sole placement agent. The transaction was executed through an effective shelf registration, indicating the company had prepared in advance for potential capital raising opportunities. For investors, this cash infusion improves Draganfly's ability to capitalize on market opportunities while extending its operational runway. The warrant component provides the company with potential additional capital if the share price performs well enough to incentivize warrant exercise at the 37.5% premium to the unit price.

Saskatoon, SK., July 21, 2025 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), an award-winning developer of drone solutions, software, and robotics, today announced the closing of its previously announced registered direct offering of 4,672,895 units of the Company (the “Units”), at a price of US$5.35 per Unit, for gross proceeds of approximately US$25.0 million, before deducting placement agent discounts and offering expenses (the “Offering”).

Each Unit consists of one common share in the capital of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”). The Warrants entitle the holder thereof to purchase one Common Share at an exercise price of CA$7.3579 (the Canadian dollar equivalent of US$5.35) per Common Share, are exercisable immediately and will expire five years following the date of issuance.

Maxim Group LLC acted as sole placement agent for the Offering.

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 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 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 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
Cameron Chell, Chief Executive Officer
Tel: (306) 955-9907
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. These forward looking statements are subject to numerous factors, many of which are beyond Draganfly’s control, including but not limited to, those important factors disclosed previously and from time to time in Draganfly’s filings with the securities regulatory authorities in the Canadian provinces of British Columbia, Ontario and Saskatchewan and with the SEC. 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

How much did Draganfly (DPRO) raise in its July 2025 offering?

Draganfly raised US$25.0 million in gross proceeds through a registered direct offering of units priced at US$5.35 per unit.

What are the terms of DPRO's July 2025 offering warrants?

Each warrant allows the purchase of one common share at CA$7.3579, is exercisable immediately, and expires five years from issuance.

How will Draganfly use the proceeds from its US$25M offering?

Draganfly plans to use the proceeds for general corporate purposes, including funding new product development, marketing initiatives, potential acquisitions, and working capital requirements.

Who was the placement agent for Draganfly's July 2025 offering?

Maxim Group LLC acted as the sole placement agent for the offering.

How many units were issued in DPRO's July 2025 offering?

Draganfly issued 4,672,895 units, with each unit consisting of one common share and one warrant.