SASKATOON, SK - Draganfly Inc. (NASDAQ: NASDAQ:DPRO), a developer of drone solutions and systems, has announced an agreement with an institutional investor to purchase approximately 13.5 million units of the company, each comprising one common share or a pre-funded warrant, plus a warrant to purchase one common share. The units were sold at $0.259 each, totaling around $3.5 million before deductions for underwriting discounts and expenses.
The warrants, exercisable immediately and expiring five years from the date of issue, are priced at $0.259 and will be in Canadian currency. Maxim (NASDAQ:MXIM) Group LLC is the sole placement agent for the offering. In parallel, the company has reached an agreement to amend the terms of previously issued warrants from October, adjusting the exercise price to $0.259 and removing the cashless exercise option.
The offering, expected to close on or about May 1, 2024, is subject to customary closing conditions and regulatory approvals, including from the Canadian Securities Exchange and notification to the Nasdaq Stock Market.
Draganfly intends to allocate the net proceeds towards general corporate purposes, which may include funding growth initiatives, working capital requirements, potential acquisitions, and research and development of the company's core products.
The offering is made under an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission and the company's Canadian short form base shelf prospectus. Securities will be offered and sold in the United States only, with no sales to Canadian purchasers. Details of the offering will be available on the SEDAR+ and SEC websites once the prospectus supplement and accompanying base shelf prospectus are filed.
This press release is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities, nor will there be any sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
InvestingPro Insights
As Draganfly Inc. (NASDAQ: DPRO) navigates its latest financial maneuver, engaging with institutional investors and amending terms of previously issued warrants, it is essential to understand the company's current financial health and market performance.
According to InvestingPro data, Draganfly holds a market capitalization of $16.72 million USD, which reflects the market's valuation of the company. Despite analysts' anticipation of sales growth in the current year, Draganfly's revenue has seen a downturn, with a -13.81% change over the last twelve months as of Q4 2023.
InvestingPro Tips highlight that Draganfly holds more cash than debt on its balance sheet, a positive signal for potential investors concerned about the company's liquidity. Still, the company is quickly burning through cash, which could be a point of caution for those considering the stock.
With a high Price / Book multiple of 55.19 as of Q4 2023, Draganfly's stock trades at a premium compared to its book value, which may influence investment decisions. Additionally, the stock price has experienced significant volatility, with a 36.39% return over the last month, yet a -73.22% return over the last year as of April 2024.
For investors and analysts looking to dive deeper into Draganfly's prospects, more InvestingPro Tips are available, offering detailed analyses and forecasts. Using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a wealth of financial data and insights to inform their investment strategies. With these resources at hand, including the 15 additional tips listed in InvestingPro for Draganfly, investors can make more informed decisions aligned with their financial goals.
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