Draganfly Announces Pricing of US$25.0 Million Registered Direct Offering

Rhea-AI Summary

Draganfly (NASDAQ: DPRO), a drone solutions developer, has announced a US$25.0 million registered direct offering with institutional investors. The offering consists 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 exercisable immediately at CA$7.3579 per share and will expire in five years. Maxim Group LLC serves as the sole placement agent. The offering, expected to close around July 21, 2025, will be made in the United States only under an effective shelf registration. The proceeds will fund new product development, working capital requirements, potential acquisitions, and general corporate purposes.

Positive

• Secured significant funding of US$25.0 million through institutional investors
• Warrants provide potential for additional future capital at CA$7.3579 per share
• Proceeds will support product development and potential strategic acquisitions
• Five-year warrant term offers long-term financing flexibility

Negative

• Offering will cause immediate dilution to existing shareholders
• Additional dilution possible if warrants are exercised
• No sales permitted to Canadian investors, limiting investor base

Insights

Financial Analyst

Draganfly secures $25M financing to fund growth initiatives, potentially accelerating product development and acquisition strategy.

Draganfly has secured $25 million in fresh capital through a registered direct offering to institutional investors, pricing 4,672,895 units at $5.35 per unit. Each unit includes one common share plus one warrant exercisable at CA$7.3579 (US$ equivalent of $5.35) with a five-year term. This financing structure provides immediate capital while creating potential for additional future funding if the company performs well enough for warrant holders to exercise their options.

The capital raise represents a strategic move to strengthen Draganfly's financial position, with proceeds earmarked for general corporate purposes, including funding growth initiatives, working capital requirements, product development, marketing, and potential acquisitions. For a drone technology company in a rapidly evolving sector, this capital infusion could be transformative in accelerating R&D efforts and expanding market reach.

The involvement of Maxim Group as sole placement agent and the fact that institutional investors are participating suggests a level of validation for Draganfly's business model and growth prospects. The offering is being conducted under an effective shelf registration, indicating the company had planned for this capital raise as part of its financial strategy.

Notably, the financing excludes Canadian purchasers, focusing exclusively on U.S. investors. The transaction is expected to close around July 21, 2025, pending customary approvals from regulatory bodies including the Canadian Securities Exchange and Nasdaq.

Saskatoon, SK., July 18, 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 that it has entered into a securities purchase agreement with several institutional investors to purchase 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 will consist 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 will 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 is acting 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 is expected to close on or about July 21, 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 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, 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
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) registered direct offering in July 2025?

Draganfly's offering consists of 4,672,895 units at US$5.35 per unit, totaling approximately US$25.0 million in gross proceeds.

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

The proceeds will be used for general corporate purposes, including funding new product capabilities, working capital requirements, potential acquisitions, and research and development.

What are the terms of the warrants in Draganfly's (DPRO) July 2025 offering?

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

When is Draganfly's (DPRO) US$25M offering expected to close?

The offering is expected to close on or about July 21, 2025, subject to customary closing conditions including regulatory approvals.

Who is the placement agent for Draganfly's (DPRO) registered direct offering?

Maxim Group LLC is acting as the sole placement agent for the offering.