Draganfly Announces Pricing of US$3.6 Million Underwritten Public Offering

Rhea-AI Summary

Draganfly (NASDAQ: DPRO) has announced the pricing of its underwritten public offering of 1,715,000 units at US$2.10 per unit, aiming to raise approximately US$3.6 million in gross proceeds. Each unit consists of one common share and one warrant, with warrants exercisable immediately at CA$3.9779 (US$2.875) and expiring in five years.

The company granted the underwriter, Maxim Group LLC, a 45-day over-allotment option for an additional 15% of shares/warrants. Draganfly plans to use the proceeds for general corporate purposes, including funding new product demands, working capital requirements, potential acquisitions, and R&D. The offering is expected to close around May 5, 2025, subject to regulatory approvals.

Positive

• Raised US$3.6 million to fund growth initiatives and product development
• Five-year warrants provide potential additional funding through exercise
• Proceeds will support working capital and potential acquisitions

Negative

• Offering will cause immediate dilution for existing shareholders
• Warrant exercise price represents a significant premium to the offering price
• Additional 15% dilution possible through over-allotment option

Insights

Financial Analyst

Draganfly's $3.6M offering provides operational funding but dilutes shareholders, with warrant structure suggesting management expects significant future share price appreciation.

Draganfly has priced its $3.6 million underwritten public offering at $2.10 per unit, with each unit containing one common share and one warrant. This financing structure reveals several important implications for investors.

The immediate issuance of 1,715,000 new common shares will dilute existing shareholder ownership. The warrants, exercisable at $2.875 (US), represent a 36.9% premium over the unit price, suggesting management anticipates meaningful share price appreciation in the future. These warrants expire in five years and could result in additional dilution if exercised.

The underwriter's 15% over-allotment option creates potential for further near-term dilution. If all warrants are eventually exercised, the company could receive approximately $4.9 million in additional future capital.

The proceeds will fund multiple initiatives including new product demand, working capital requirements, product development, marketing efforts, and potential acquisitions. This broad allocation framework gives management significant flexibility in capital deployment as market conditions evolve.

For context, the drone solutions sector requires continuous investment in R&D and marketing to maintain technological competitiveness. The relatively modest size of this offering suggests careful capital management will be essential for Draganfly to execute effectively across its stated objectives.

The involvement of Maxim Group as sole book-runner and the quick expected closing date (May 5, 2025) indicate standard execution for this type of offering. Importantly, the filing notes that no securities will be offered to Canadian purchasers despite the company's CSE listing.

Saskatoon, SK., May 02, 2025 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), a drone solutions, and systems developer, today announced the pricing of its previously announced underwritten public offering (the “Offering”) of 1,715,000 units, with each unit consisting of one common share and one warrant to purchase one common share. Each unit is to be 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 will 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 a 45-day over-allotment option to purchase up to an additional 15 percent of the number of common shares and/or warrants offered in the Offering.

Maxim Group LLC is acting 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 is expected to close on or about May 5, 2025, subject to the satisfaction of customary closing conditions.

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.

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 preliminary 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 Canada 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. A final prospectus supplement with the final terms will be filed with the securities regulatory authorities in the Canadian provinces of British Columbia, Saskatchewan and Ontario and the SEC. Copies of the preliminary prospectus supplements, accompanying Base Shelf Prospectus, and final prospectus supplement, when available, 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 timing, size and expected gross proceeds of the Offering, the satisfaction of customary closing conditions related to the Offering and sale of securities, the intended use of proceeds, and Draganfly’s ability to complete the Offering. 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 size and price of Draganfly's (DPRO) May 2025 public offering?

Draganfly's offering consists of 1,715,000 units priced at US$2.10 per unit, aiming to raise US$3.6 million in gross proceeds. Each unit includes one common share and one warrant.

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

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

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

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

When is DPRO's 2025 public offering expected to close?

The offering is expected to close on or about May 5, 2025, subject to customary closing conditions and regulatory approvals.

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

Maxim Group LLC is acting as the sole book-running manager for the offering.