Draganfly Inc. (NASDAQ:DPRO) saw its stock plummet 27% on Thursday after unveiling the pricing details of a $25 million registered direct offering, sparking investor concerns about dilution and valuation.
The drone technology firm confirmed it has entered into a securities purchase agreement with institutional investors for the sale of 4,672,895 units, each priced at $5.35. Each unit includes one common share and one warrant to purchase an additional share at the same $5.35 price (CA$7.3579). The warrants are exercisable immediately and will expire five years from the date of issuance.
Maxim Group LLC has been appointed as the sole placement agent for the deal, which is expected to close on or around July 21, 2025, pending customary regulatory approvals and closing conditions.
The offering price marks a significant discount from Draganfly’s previous closing price of $7.22, triggering a sharp selloff as investors weighed the potential dilution to existing equity holders.
Draganfly stated that the capital raised will be used for a variety of corporate initiatives. These include scaling up production to meet anticipated product demand, investing in new growth opportunities, funding research and development, pursuing possible acquisitions, and supporting general working capital needs.
The steep drop in share price underscores the market’s sensitivity to equity financings that involve discounted pricing or could significantly expand a company’s float.
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