Tampa-based drone developer Draganfly is raising $10 million from two investors to develop its technology and support growing demand as the company expands its defense business in the United States and abroad.
Unusual Machines, a publicly traded drone and drone-component manufacturer, is investing $5 million, while an unnamed U.S. investment fund is putting up the other $5 million. The investment is structured as a registered direct offering of roughly 1.87 million new shares at $5.35 apiece, the stock’s closing price Friday.
Draganfly plans to use the money for product development and working capital. The investment arrives less than three weeks after the company received an initial contract to supply 100 low-cost tactical surveillance drones to the Canadian Armed Forces, with options that could eventually increase the purchase to as many as 4,900 systems.
Draganfly has also been expanding its U.S. defense operations. Unusual Machines CEO Allan Evans said his company’s investment would support Draganfly’s production growth while deepening the companies’ supplier relationship.
“America and its allies are entering a period in which the ability to manufacture drones, components and autonomous systems at scale is becoming a strategic capability,” Evans said.
Draganfly CEO Cameron Chell said the investment comes as customer adoption and government procurement increase alongside domestic manufacturing of autonomous systems.
“This strategic investment from Unusual Machines and a leading U.S. Investment Fund is about positioning, not size,” Chell said. “It is about aligning capabilities that can best serve the industries’ requirements at scale domestically and abroad.”
The transaction is expected to close Sept. 29, subject to regulatory approvals and other customary closing conditions. Jett Capital Advisors and Northland Capital Markets are serving as joint lead placement agents.