Draganfly Announces Pricing of US$3.5 Million Registered Direct Offering
Draganfly Inc. announced a Registered Direct Offering worth US$3.5 million, where a single institutional investor purchased 13,513,514 units consisting of common shares and warrants. The public offering price was US$0.259 per unit, with Maxim Group acting as the sole placement agent. The Offering is intended for general corporate purposes, including funding growth initiatives, working capital requirements, and product development.
Securities purchase agreement with an institutional investor for US$3.5 million.
Maxim Group acting as the sole placement agent for the Offering.
Intended use of net proceeds for general corporate purposes, growth initiatives, and product development.
Potential dilution of shares due to the issuance of additional units.
Risk associated with the exercise price adjustment of the October Warrants.
Dependence on regulatory approvals, including from the Canadian Securities Exchange and Nasdaq Stock Market.
Draganfly's registered direct offering, with its implications for dilution of current shareholders due to the issuance of over 13 million units, is pivotal for stakeholders. The offering price of
Considering Draganfly's intent to fund growth initiatives with the proceeds, the short-term dilutive effects must be measured against potential long-term value creation. Investors should closely monitor the deployment of these funds into areas like R&D and potential acquisitions, as these actions could either bolster the company's competitive edge or exacerbate financial strain depending on their execution.
Within the drone solutions sector, Draganfly's move to adjust warrant terms and expedite access to capital could indicate a race to innovate or capture market share. The conversion of warrant functional currency to Canadian dollars and the change in the cashless exercise provision reflect a strategic shift that may affect U.S. and international investor relations.
Furthermore, the emphasis on funding 'capabilities to meet demand for new products' signals a targeted approach to growth within the competitive landscape. Analysts and investors should track consumer and industry response to the new products funded by this offering, which will serve as indicators for the company's future performance.
Saskatoon, SK., April 29, 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 entered into a securities purchase agreement with a single institutional investor to purchase 13,513,514 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 a public offering price of US
Maxim Group LLC is acting as sole placement agent for the Offering.
Pursuant to a prior underwritten public offering of the Company in the United States, the Company issued 6,400,000 common share purchase warrants (the “October Warrants”) with each warrant entitling the holder thereof to purchase one common share of the Company at an exercise price of US
The Offering is subject to customary closing conditions including receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange and notification to the Nasdaq Stock Market.
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 is expected to close on or about May 1, 2024 (the “Closing Date”), subject to the satisfaction of customary closing conditions.
The Offering is being 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 will offer and sell the securities in the United States only. No securities will be offered or sold to Canadian purchasers.
A prospectus supplement and accompanying Base Shelf Prospectus relating to the Offering and describing the terms thereof will be filed with the applicable securities commissions in Canada and with the SEC in the United States and will be 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, when available, 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 the creator of drone solutions, software, and AI systems.
Media Contact
Arian Hopkins
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 timing of closing of the Offering and the anticipated use of proceeds from the Offering; the entry by the Company and the holder of the October Warrants into the Amendment Agreement; the closing of the Warrant Amendments. Closing of the Offering is subject to numerous factors, many of which are beyond Draganfly’s control, including but not limited to, the failure of the parties to satisfy certain closing conditions, and other 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
What is the purpose of Draganfly's Registered Direct Offering?
Who acted as the sole placement agent for the Offering?
How much did the institutional investor purchase in the Offering?
What is the exercise price of the warrants issued in the Offering?
When is the expected Closing Date for the Offering?
