SASKATOON - Draganfly Inc. (NASDAQ: NASDAQ:DPRO), a developer of drone solutions and systems, has announced the terms of its underwritten public offering of 13.4 million units at a price of $0.27 each, aiming to raise approximately $3.6 million before expenses. The offering, expected to close by February 26, 2024, includes warrants with an exercise price of $0.36 per share, exercisable immediately and expiring five years from issuance.
Maxim Group LLC is managing the offering, with the proceeds intended for general corporate purposes, such as funding growth initiatives and working capital needs, including the development and marketing of the company's core products, potential acquisitions, and research and development.
This offering is being made under a shelf registration statement 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. Draganfly will offer and sell the securities in the United States only, with no sales to Canadian purchasers.
The offering is subject to customary closing conditions, including necessary regulatory approvals from the Canadian Securities Exchange and notification to the Nasdaq Stock Market.
Draganfly's decision to proceed with the offering follows the filing of a preliminary prospectus supplement and accompanying Base Shelf Prospectus with Canadian securities commissions and the SEC. Interested parties can access these documents on the SEDAR+ website or the SEC's website.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.
The information provided in this article is based on a press release statement from Draganfly Inc.
InvestingPro Insights
Draganfly Inc. (NASDAQ: DPRO) is currently navigating challenging financial waters, as indicated by its recent underwritten public offering aimed at raising capital. The real-time data from InvestingPro reveals a market capitalization of $18.48 million USD, underscoring the company's relatively small size in the competitive tech sector. Despite a quarterly revenue growth of 13.95% in Q1 2023, Draganfly's year-over-year revenue growth has declined by 12.28%, suggesting some inconsistency in its financial performance.
Investors should take note of the InvestingPro Tips that highlight the company's current financial state. Draganfly holds more cash than debt, which is a positive sign of liquidity, and its liquid assets exceed short-term obligations, providing some financial flexibility. However, the company is quickly burning through its cash reserves and has not been profitable over the last twelve months. Additionally, the stock price has been quite volatile, with significant drops over the last week, three months, six months, and year. These factors contribute to a challenging outlook, as analysts do not anticipate the company will be profitable this year.
For those considering an investment in Draganfly, it is important to weigh the potential risks against the company's strategies for growth and market positioning. The InvestingPro platform offers an additional 12 InvestingPro Tips for Draganfly, which can provide deeper insights into the company's financial health and prospects. To explore these tips and gain a comprehensive analysis, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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