Draganfly Inc, a prominent developer of drone solutions and systems, has announced the pricing details of its underwritten public offering, sending ripples through the stock market as investors react to the news. The offering, consisting of 13,400,000 units, each comprising one common share and one warrant to purchase one common share, was sold at a public offering price of US$0.27 per unit, resulting in gross proceeds of approximately US$3.6 million.
However, the unveiling of the public offering has had a notable impact on the stock price of Draganfly, which opened trading on Thursday at $0.20, a significant decline from Wednesday’s market close at $0.36. This substantial drop in stock value underscores investors’ reaction to the announcement and highlights the market’s response to the dilution of existing shares due to the offering.
At the time of this publication, BuzzFeed Inc stock (DPRO) has witnessed a decline.
Draganfly Inc
Current Price: $0.18
Change : -0.18
Change (%): (-50.31%)
Volume: 10.4M
Source: Tomorrow Events Market Data
Furthermore, Draganfly’s stock is experiencing an unusually high trading volume, with over 10.4 million shares already changing hands, far exceeding its daily average of 265.7 thousand shares. This heightened level of trading activity suggests heightened investor interest and indicates the significance of the public offering in shaping market sentiment towards the company.
Maxim Group LLC has been enlisted as the sole book-running manager for the offering, overseeing the execution of the transaction and ensuring its smooth facilitation. The involvement of a reputable financial firm underscores the seriousness and strategic importance of the offering for Draganfly and its stakeholders.
The net proceeds from the offering are slated to be utilized for a variety of purposes, including general corporate initiatives and funding growth opportunities. Draganfly intends to allocate the funds towards meeting the demand for its new products, supporting growth initiatives, and addressing working capital requirements. Additionally, the funds may be allocated towards potential acquisitions, research and development endeavors, and ongoing marketing efforts.
It’s important to note that the offering is subject to customary closing conditions, including regulatory approvals from entities such as the Canadian Securities Exchange and the Nasdaq Stock Market. The expected closing date for the offering is on or about February 26, 2024, pending the fulfillment of all necessary conditions.
As Draganfly navigates through this pivotal phase of fundraising and strategic realignment, investors will closely monitor developments surrounding the offering and its impact on the company’s future trajectory. The success of the offering and its subsequent utilization of funds will be key indicators of Draganfly’s ability to capitalize on growth opportunities and drive value for its shareholders in the dynamic landscape of the drone industry.
