Drone maker Draganfly descends on $25 mln direct stock deal

U.S.-listed shares of Draganfly Inc DPRO.O down 27.1% premarket to $5.26 as Canadian drone maker raises $25 mln of equity

Co says entered agreement with several institutional investors to purchase ~4.7 mln units in registered direct offering at $5.35

Offering price represents 26% discount to stock's last close

Each unit comprises one share and one 5-yr warrant to purchase an additional share

Co expects to use net offering proceeds for general purposes, including to fund new products and growth, and for working capital, potential acquisitions and R&D

Maxim Group sole placement agent for the offering

DPRO shares on Thurs soared ~39% following ~43% gain on Weds, and have more than tripled over the past month

Drone-related stocks have gotten a boost recently after U.S. Defense Secretary Pete Hegseth ordered sweeping new orders to fast-track drone production and deployment

Draganfly has ~13.4 mln shares outstanding and roughly the same amount of public float, per LSEG data

Just 2 analysts cover Draganfly, both with "buy" ratings: H.C. Wainwright has $6 PT, while Maxim has $7 PT - LSEG