Draganfly Announces Closing of US$3.5 Million Registered Direct Offering

Saskatoon, SK., May 01, 2024 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8A) (“Draganfly” or the “Company”), a drone solutions, and systems developer, today announced that it has closed its previously announced offering of 13,513,514 units of the Company, with each unit consisting of one common share (or one pre-funded warrant to purchase one common share in lieu thereof) and one warrant to purchase one common share. Each unit was sold at a public offering price of US$0.259, for gross proceeds of approximately US$3.5 million (the “Offering”), before deducting underwriting discounts and offering expenses. The warrants have an exercise price of US$0.259 (CA$0.3540) per share, are exercisable immediately, will expire five years following the date of issuance and the exercise price is in Canadian currency.

Maxim Group LLC acted as sole placement agent for the Offering.

Pursuant to a prior underwritten public offering of the Company in the United States, the Company issued 6,400,000 common share purchase warrants (the “October ‎Warrants”) with each warrant entitling the holder thereof to purchase one common share of the Company at an exercise price ‎of US$0.6123, subject to adjustment, until October 30, 2028. In connection with the closing of the Offering, the ‎Company and the holder of the October Warrants have entered into an amendment agreement, whereby the ‎exercise price of the October Warrants was reduced to US$0.259 (CA$0.3583), the cashless exercise procedure of the October Warrants was removed, and the functional currency of the October Warrants was converted to Canadian dollars.‎

Draganfly currently intends to use the net proceeds from the Offering for general corporate purposes, including to fund its capabilities to meet demand for its new products including growth initiatives and/or for working capital requirements including the continuing development and marketing of the Company’s core products, potential acquisitions and research and development.

The Offering was made pursuant to an effective shelf registration statement on Form F-10, as amended, (File No. 333-271498) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission (“SEC”) on July 5, 2023 and the Company’s Canadian short form base shelf prospectus dated June 30, 2023 (the “Base Shelf Prospectus”). Draganfly sold the securities in the United States only. No securities were offered or sold to Canadian purchasers.