Draganfly Announces Closing of US$3.6 Million Underwritten Public Offering

Rhea-AI Summary

Draganfly (NASDAQ: DPRO) has successfully closed its previously announced underwritten public offering, raising US$3.6 million in gross proceeds. The offering consisted of 1,715,000 units priced at US$2.10 per unit, with each unit comprising one common share and one warrant. The warrants have an exercise price of CA$3.9779 (US$2.875), are immediately exercisable, and will expire in five years.

Maxim Group LLC served as the sole book-running manager and partially exercised its 45-day over-allotment option to purchase an additional 100,000 warrants. The company plans to use the net proceeds for general corporate purposes, including funding capabilities for new products, growth initiatives, working capital, potential acquisitions, and R&D.

Positive

• Successfully raised US$3.6 million in gross proceeds through public offering
• Warrants are immediately exercisable with a 5-year expiration period
• Funds will support new product development, growth initiatives, and potential acquisitions

Negative

• Potential dilution for existing shareholders due to new share issuance
• Offering price of US$2.10 per unit may represent a discount to market price
• Additional dilution possible through warrant exercises

Insights

Financial Analyst

Draganfly secured $3.6M through a unit offering with 5-year warrants, strengthening capital for product development and potential acquisitions.

Draganfly has successfully closed its $3.6 million underwritten public offering through a structured unit sale. Each unit, priced at $2.10, consists of one common share bundled with one warrant, creating an attractive package for investors. The attached warrants feature an exercise price of $2.875 (or CA$3.9779), representing a 37% premium over the unit price, and remain exercisable for a full five-year period.

The offering structure reveals careful financial engineering. By including warrants with each share, Draganfly creates potential for additional capital infusion if the company's performance justifies the higher exercise price in the future. Maxim Group LLC served as the sole book-running manager, partially exercising their over-allotment option to purchase 100,000 additional warrants, though notably not additional common shares.

The company has clearly outlined its intended use of proceeds, directing funds toward multiple strategic initiatives: meeting demand for new products, supporting working capital requirements, continuing development of core products, marketing efforts, potential acquisitions, and research and development activities. This allocation suggests a balanced approach between current operational needs and future growth opportunities.

This capital raise was executed through an effective shelf registration and offered exclusively to U.S. investors, with no securities sold to Canadian purchasers despite the company's Canadian connections. Draganfly's multi-exchange presence (NASDAQ, CSE, and Frankfurt) provides it with access to various investor bases, which could be valuable for future capital raising activities as the drone solutions market continues to evolve.

Drone Industry Expert

Draganfly's $3.6M capital raise provides essential funding for R&D and production scaling in the competitive drone solutions market.

This $3.6 million capital injection comes at a strategic time for Draganfly in the rapidly evolving drone solutions sector. As explicitly stated in their funding allocation plans, the company intends to direct these resources toward meeting demand for new products - a critical capability in an industry where technological advancement and production scaling determine market positioning.

The specific mention of using proceeds for "continuing development and marketing of the Company's core products" indicates Draganfly is maintaining focus on its established product lines while also allocating resources to innovation. In the drone systems development space, continuous R&D investment is particularly important as companies compete to integrate advanced sensors, artificial intelligence, and autonomous capabilities into their offerings.

Notably, Draganfly has explicitly kept the door open for "potential acquisitions" with this funding. This suggests a strategic awareness of the fragmented drone technology landscape, where specialized capabilities often reside in smaller companies that make attractive acquisition targets. Technology integration through strategic acquisitions can accelerate development timelines significantly compared to internal development alone.

The five-year warrant window provides Draganfly with a relatively long runway to demonstrate value creation that could trigger warrant exercises, potentially bringing in an additional $4.9 million if all 1,815,000 warrants (including the over-allotment) are eventually exercised. This extended timeline aligns well with the typically lengthy development cycles for sophisticated drone systems and the time needed to secure regulatory approvals across different jurisdictions.

Saskatoon, SK., May 05, 2025 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), a drone solutions, and systems developer, today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,715,000 units (the “Units”), with each Unit consisting of one common share and one warrant to purchase one common share (each, a “Warrant”). Each Unit was sold at a public offering price of US$2.10, for gross proceeds of approximately US$3.6 million, before deducting underwriting discounts and offering expenses. The Warrants have an exercise price of CA$3.9779 (or US$2.875) per share, are exercisable immediately and will expire five years following the date of issuance. In addition, the Company granted the Underwriter (as defined below) a 45-day over-allotment option to purchase up to an additional 15% of the number of common shares and/or warrants offered in the Offering, of which the Underwriter has partially exercised its option to purchase an additional 100,000 Warrants.

Maxim Group LLC (the “Underwriter”) acted as sole book-running manager 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 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

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

Draganfly raised US$3.6 million in gross proceeds through an underwritten public offering of 1,715,000 units priced at US$2.10 per unit.

What are the terms of DPRO's warrants issued in the May 2025 offering?

The warrants have an exercise price of CA$3.9779 (US$2.875), are exercisable immediately, and will expire five years from the issuance date.

How will Draganfly use the proceeds from its 2025 public offering?

Draganfly intends to use the proceeds for general corporate purposes, including funding new product development, growth initiatives, working capital, potential acquisitions, and R&D.

Who was the underwriter for Draganfly's May 2025 public offering?

Maxim Group LLC acted as the sole book-running manager for the offering and partially exercised its over-allotment option to purchase 100,000 additional warrants.