Draganfly Inc. Announces New Investment Agreement to Propel Growth
In an exciting development for the drone technology industry, Draganfly Inc., a prominent drone solutions and systems developer, has entered into a significant securities purchase agreement with an institutional investor. This new agreement involves the purchase of 1,600,000 units of the company. Each unit is composed of one common share (or a pre-funded warrant that can be used to purchase a common share) and one additional warrant for a common share. The units are being sold at a price of US$2.35 per unit, which equates to gross proceeds of approximately US$3.76 million. This figure is calculated before subtracting any placement agent discounts and offering expenses.
Maxim Group LLC has been appointed as the sole placement agent for this offering, which speaks to their reputation in handling such transactions efficiently.
Understanding the Offering and Its Components
To break down the specifics, the warrants included in the units come with an exercise price of CA$3.3086 (or US$2.35) per share. These warrants are exercisable immediately and will expire five years after the date they are issued. The exercise price, notably, is set in Canadian currency, which is an important detail for potential investors to consider.
Looking at Draganfly’s history, the company has been active in issuing warrants as part of previous offerings in the United States. For instance, back in October 2023, the company issued warrants for 256,000 common shares at an exercise price of CA$5.6925 (US$4.1152). Similarly, in May 2024 and August 2024, warrants were issued for 540,541 and 666,667 common shares, respectively, at varying exercise prices. These previous issues are collectively referred to as the “Existing Warrants.”
With the closing of this current offering, Draganfly plans to enter into an amendment agreement with the holder of the Existing Warrants. This agreement will adjust the exercise price of the Existing Warrants to CA$3.3086 (or US$2.35) per share, aligning them with the new offering. This strategic move is expected to make the warrants more attractive and potentially enhance liquidity.
Regulatory Approvals and Closing Conditions
The successful completion of this offering is contingent upon meeting customary closing conditions, which include obtaining necessary regulatory approvals. These approvals must be secured from various bodies, including the Canadian Securities Exchange and notification to the Nasdaq Stock Market. Such regulatory scrutiny ensures transparency and compliance with financial laws, providing reassurance to investors.
Draganfly intends to utilize the net proceeds from this offering for a range of corporate purposes. These include funding growth initiatives, meeting working capital requirements, and advancing research and development efforts. The company is eager to expand its capabilities and meet the rising demand for its innovative products. The offering is expected to close around November 19, 2024, assuming all closing conditions are satisfied.
Legal and Regulatory Framework
The offering is being conducted under an effective shelf registration statement on Form F-10, which was previously filed with and approved by the U.S. Securities and Exchange Commission (SEC) on July 5, 2023. Additionally, the company has a Canadian short form base shelf prospectus dated June 30, 2023. It’s important to note that Draganfly will only offer and sell these securities in the United States. No securities are being offered to Canadian purchasers, which is a strategic decision by the company.
A prospectus supplement and accompanying base shelf prospectus, detailing the terms of the offering, will be filed with the relevant securities commissions in both Canada and the United States. These documents will be accessible for free through the SEDAR+ website, managed by the Canadian Securities Administrators, or via the SEC’s website. Interested parties can also contact Maxim Group LLC for more information on obtaining these documents.
This announcement should not be misconstrued as an offer to sell or a solicitation to buy securities in jurisdictions where such actions would be illegal. The sale of these securities is subject to registration or qualification under the relevant securities laws of those jurisdictions.
About Draganfly Inc.
Draganfly Inc. has established itself as a leader in the field of drone solutions, software, and artificial intelligence (AI) systems. The company is listed on NASDAQ, CSE, and FSE under the ticker symbols DPRO and 3U8A, respectively. Draganfly is renowned for its cutting-edge technology and innovative approach to developing drone-based solutions that cater to a wide range of industries.
Forward-Looking Statements and Investor Considerations
The news release contains certain forward-looking statements, which inherently involve numerous risks, uncertainties, and assumptions. These statements include expectations about the closing of the offering, the use of proceeds, and the execution of the amendment agreement related to the existing warrants. These forward-looking statements reflect the current expectations of Draganfly’s management but are subject to factors beyond the company’s control, such as failure to meet closing conditions.
Investors are advised to exercise caution and not place undue reliance on these forward-looking statements. The company emphasizes the importance of reviewing its offering documents and continuous disclosure documents, which are available on SEDAR+ and EDGAR. These documents provide comprehensive insights into the company’s financial standing and strategic direction.
In conclusion, Draganfly’s latest securities purchase agreement represents a significant step forward in its growth strategy. The proceeds from this offering will enable the company to enhance its capabilities and continue to innovate in the drone technology sector. As the industry evolves, Draganfly remains committed to leveraging its expertise in drone solutions and AI systems to meet the dynamic needs of its customers. For more information about Draganfly and its latest developments, interested individuals can visit the company’s official website or refer to public financial disclosures available online.
For more Information, Refer to this article.
