Draganfly Establishes Dedicated U.S. Defense Subsidiary, Appoints Former Under Secretary & Acting Secretary of the Navy Thomas Modly as Chairman

The subsidiary is expected to draw on Draganfly’s broader engineering, manufacturing, software and technology resources across North America.

Rhea-AI Summary

Draganfly (DPRO) established Draganfly Defense USA, a dedicated subsidiary intended to support its expansion in U.S. defense and national security markets. Thomas B. Modly, former Under Secretary and Acting Secretary of the U.S. Navy, will chair the subsidiary and relinquish his Draganfly board seat in accordance with regulatory requirements. Draganfly CEO and Chairman Cameron Chell will serve as a subsidiary director.

Draganfly intends the structure to support defense-specific governance, cybersecurity, data protection and export controls, including protection of controlled technologies and sensitive information where required. Brigadier General AJ Pasagian, appointed subsidiary president in August 2026, will lead U.S. defense operations. Recent developments include the Skip Dynamix acquisition and selection with F4 Defense International for a DEVCOM Army Research Laboratory contract to develop an integrated system to counter unmanned aircraft.

5 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointDEVCOM Army Research Laboratory development contract selection with F4 Defense International covers a modular, multi-layered counter-unmanned-aircraft system.
• Moderate pointSkip Dynamix acquisition completed as part of Draganfly’s U.S. defense expansion.
• Minor pointDraganfly Defense USA established to support expansion in U.S. defense and national security markets.
• Minor point. Forward-looking: it has not happened yet and may not happen.Defense-specific operating framework planned for governance, cybersecurity, data protection and export-control procedures.
• Minor pointNorth American manufacturing and supply-chain capabilities continue to expand.

Negative

• None.

Key Terms

export-control, counter-uas, human factors engineering

3 terms

export-control regulatory

"export-control and operational procedures"

Export-control are government rules that restrict or require permission to ship certain products, technology, or services across national borders. They matter to investors because they can limit a company’s ability to sell goods, access markets, or work with certain partners; think of them like travel visas for products—if a business can’t get the needed clearance, revenue, supply chains and legal risk can be affected.

counter-uas technical

"counter-UAS technologies"

Counter-UAS (counter-unmanned aircraft systems) are tools and tactics used to detect, track, and disable or divert drones that pose a threat to people, property, or operations. Think of them as a combination of a security camera, alarm system, and net that can find an unwanted flying device and stop it before it causes harm. Investors care because demand, regulation, and deployment of these systems affect revenue, contract opportunities, legal risk, and the valuation of companies that build or use them.

human factors engineering technical

"human factors engineering designed to provide and sustain advantage"

Human factors engineering is the discipline that studies how people interact with products, systems and environments and then uses that knowledge to design interfaces, controls, instructions and workflows so the product can be used safely and effectively by its intended users. In regulated product contexts (for example medical devices), it uses iterative methods — user research, task analysis, failure-mode/risk assessment, prototype redesign and usability testing — to identify and remove use-related hazards, and it produces documentation and validation testing showing that real users can perform required tasks. It addresses how design influences human behavior and error, not whether a product achieves clinical or financial outcomes.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Draganfly Defense USA to Accelerate U.S. Military Market Expansion, Strengthen Domestic Defense Capabilities and Support Growing Demand for Secure, Mission-Critical Unmanned Systems

Washington, DC, Oct. 12, 2026 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading developer of drone solutions and systems, today announced the establishment of Draganfly Defense USA, Inc., a dedicated U.S. defense subsidiary formed to support the Company’s continued expansion across the United States defense and national security markets.

The dedicated U.S. structure is also intended to support the security; regulatory and compliance requirements associated with serving U.S. defense customers. Draganfly Defense USA will provide a focused framework for establishing defense-specific governance, cybersecurity, data protection, export-control and operational procedures, including the segregation and protection of controlled technologies and sensitive information where required. The structure is designed to support the demand for Draganfly’s products and services in defense programs with stringent domestic, security and compliance requirements.

Thomas B. Modly, the 33rd Under Secretary and former Acting Secretary of the U.S. Navy, will serve as Chairman of the Board of Draganfly Defense USA. Cameron Chell, CEO and Chairman of Draganfly Inc., will serve as a director of the new subsidiary.

In connection with his appointment as Chairman of Draganfly Defense USA, Modly will, in accordance with regulatory requirements, relinquish the board position he currently holds at Draganfly Inc. to assume the Chairman role at Draganfly Defense USA, focusing on growth, development and governance of Draganfly Defense USA. This reflects the increasing demand in the U.S. defense space and the opportunity to utilize Mr. Modly’s extensive experience, capabilities and leadership directly toward the development of Draganfly’s U.S. defense business. Modly has served on Draganfly’s Board of Directors since 2024 and has provided strategic guidance as the Company has expanded its presence across the defense and national security markets.

Modly brings experience across defense leadership, government and business to the role, having served as Acting Secretary of the Navy and previously as the 33rd Under Secretary of the Navy. During his tenure in the Department of the Navy, his work included organizational transformation, business operations, education, accountability and readiness across the Navy and Marine Corps.

Brigadier General AJ Pasagian, USMC (Ret’d), who was appointed President of Draganfly Defense USA in August 2026, will lead the Company’s U.S. defense operations, with responsibility for strategic growth, government and industry relationships, operational expansion and execution across defense programs.

“Establishing Draganfly Defense USA creates a dedicated structure to serve the unique requirements of the U.S. defense market,” said Modly. “I have had the opportunity to work closely with Cameron and the Draganfly team as a member of the Board, and I look forward to continuing that work in a focused capacity as Chairman of Draganfly Defense USA. The opportunity now is to build the governance, agility, operational discipline, and advanced capabilities required to support our U.S. defense customers at scale.”

Draganfly has continued to expand its presence across the U.S. defense ecosystem during 2026, including the recent acquisition of Skip Dynamix, the appointment of Brigadier General AJ Pasagian to lead its U.S. defense operations, and its selection, together with F4 Defense International, by DEVCOM Army Research Laboratory for a development contract focused on a modular, multi-layered integrated counter-UAS system, alongside the continued expansion of the Company’s North American manufacturing and supply-chain capabilities.

“Defense requirements are changing rapidly, and success in this market requires much more than delivering an aircraft,” said Pasagian. “It requires trusted technology, secure supply chains, domestic capability, and an organization structured around the operational requirements of the warfighter, including ease of use and human factors engineering designed to provide and sustain advantage for the American warfighter. Draganfly Defense USA gives us a dedicated platform from which to build those capabilities and serve the U.S. defense community.”

A Dedicated Platform for U.S. Defense Growth

Draganfly Defense USA, Inc. is intended to provide a focused operating structure for the Company’s growing U.S. defense activities, including:

• unmanned aerial systems and mission-specific aircraft;
• autonomous systems and software;
• counter-UAS technologies;
• artificial intelligence and machine vision;
• sensing, payload and secure communications technologies;
• U.S. manufacturing and domestic supply-chain development;
• integration, training and sustainment;
• strategic industry and government partnerships; and
• execution of current and future U.S. defense programs.

The dedicated subsidiary is expected to allow Draganfly to continue building U.S.-based capabilities while also leveraging the Company’s broader engineering, manufacturing, software and technology resources across North America.

About Draganfly

Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a Canadian-headquartered developer of advanced drone solutions, unmanned systems and software serving customers across North America and globally. With more than 27 years of experience in unmanned systems, Draganfly develops and delivers technologies spanning aerial platforms, autonomy, sensing, payload integration and mission-specific solutions for defense, public safety, civil, industrial, agriculture, security, mapping and surveying applications.

The Company combines engineering, manufacturing, software and systems-integration capabilities to support customers operating in complex and mission-critical environments. Draganfly is driven by a mission to provide innovative, reliable solutions that save time, money and lives.

For more information, visit www.draganfly.com.

For investor details, visit:

NASDAQ (DPRO)
CSE (DPRO)
FSE (3U8)

Media Contact

Erika Racicot
Email: media@draganfly.com

Company Contact

Cameron Chell
Chief Executive Officer
(306) 955-9907
Email: info@draganfly.com 

Forward-Looking Statements 

This release contains certain “forward looking statements” and certain “forward-looking ‎‎‎‎information” as ‎‎‎‎defined under applicable securities laws. Forward-looking statements ‎‎‎‎and information can ‎‎‎‎generally be identified by the use of forward-looking terminology such as ‎‎‎‎‎“may”, “will”, “expect”, “intend”, ‎‎‎‎‎“estimate”, “anticipate”, “believe”, “continue”, “plan” or similar ‎‎‎‎terminology. Forward-looking statements ‎‎‎‎and information are based on forecasts of future ‎‎‎‎results, estimates of amounts not yet determinable and ‎‎‎‎assumptions that, while believed by ‎‎‎‎management to be reasonable, are inherently subject to significant ‎‎‎‎business, economic and ‎‎‎‎competitive uncertainties and contingencies. Forward-looking statements ‎‎‎‎include, but are not ‎‎‎‎limited to, statements with respect to the anticipated and growing demand for the Company’s products and services in the U.S. defense and national security markets; the anticipated benefits of Draganfly Defense USA Inc., and its dedicated governance and operating structure; the Company’s ability to establish, develop and expand U.S.-based manufacturing, supply-chain, governance, cybersecurity, data protection, export-control and operational capabilities; the Company’s ability to satisfy applicable security, regulatory and compliance requirements associated with U.S. defense programs; the anticipated contribution of Draganfly Defense USA Inc. and its leadership to the Company’s strategic growth and execution in the U.S. defense market; and the development, pursuit and execution of current and future defense programs, partnerships and contracts. Forward-‎‎‎‎looking statements and information are subject to various ‎known ‎‎and unknown risks and ‎‎‎‎‎uncertainties, many of which are beyond the ability of the Company to ‎control or ‎‎predict, that ‎‎‎‎may cause ‎the Company’s actual results, performance or achievements to be ‎materially ‎‎different ‎‎‎‎from those ‎expressed or implied thereby, and are developed based on assumptions ‎about ‎‎such ‎‎‎‎risks, uncertainties ‎and other factors set out herein, including but not limited to: the potential ‎‎‎‎‎‎‎impact of epidemics, ‎pandemics or other public health crises, including the ‎COVID-19 pandemic, on the Company’s business, operations and financial ‎‎‎‎condition; the ‎‎‎successful integration of ‎technology; the inherent risks involved in the general ‎‎‎‎securities markets; ‎‎‎uncertainties relating to the ‎availability and costs of financing needed in the ‎‎‎‎future; the inherent ‎‎‎uncertainty of cost estimates; the ‎potential for unexpected costs and ‎‎‎‎expenses, currency ‎‎‎fluctuations; regulatory restrictions; and liability, ‎competition, loss of key ‎‎‎‎employees and other related risks ‎‎‎and uncertainties disclosed under the ‎heading “Risk Factors“ ‎‎‎‎in the Company’s most recent filings filed ‎‎‎with securities regulators in Canada on ‎the SEDAR+ ‎‎‎‎website at www.sedar.com and with the United States Securities and Exchange Commission (the “SEC”) on EDGAR through the SEC’s website at www.sec.gov. The Company undertakes ‎‎‎no obligation to update forward-‎looking ‎‎‎‎information except as required by applicable law. Such forward-‎‎‎looking information represents ‎‎‎‎‎managements’ best judgment based on information currently available. ‎‎‎No forward-looking ‎‎‎‎statement ‎can be guaranteed and actual future results may vary materially. ‎‎‎Accordingly, readers ‎‎‎‎are advised not to ‎place undue reliance on forward-looking statements or ‎‎‎information.‎

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Draganfly establish Draganfly Defense USA?

Draganfly intends Draganfly Defense USA to support expansion in U.S. defense and national security markets and address associated security, regulatory and compliance requirements. Its planned framework includes defense-specific governance, cybersecurity, data protection and export-control procedures, with segregation and protection of controlled technologies and sensitive information where required.

Who will chair Draganfly Defense USA?

Thomas B. Modly, former Under Secretary and Acting Secretary of the U.S. Navy, will chair Draganfly Defense USA. In accordance with regulatory requirements, he will relinquish his board position at Draganfly to assume the subsidiary chairmanship. Draganfly CEO and Chairman Cameron Chell will serve as a subsidiary director.