DRAGANFLY INC. ENTERS INTO AGREEMENT TO ACQUIRE DRONELOGICS SYSTEMS INC.

Vancouver, British Columbia, Jan. 16, 2020 (GLOBE NEWSWIRE) -- Draganfly Inc. (CSE: DFLY) (OTCQB: DFLYF) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading systems developer within the commercial Unmanned Aerial Vehicle (“UAV”) and the Unmanned Vehicle Systems (“UVS”) industry, is pleased to announce that it has entered into an arm’s length definitive share purchase agreement dated January 15^th, 2020 with the shareholders of Dronelogics Systems Inc. (“Dronelogics”), whereby Draganfly has agreed to acquire all of the shares of Dronelogics (the “Transaction”) for cash and common shares of Draganfly (“Draganfly Shares”).

Transaction Highlights

• The Transaction continues to establish Draganfly as a leading, diversified drone organization. Dronelogics has been growing steadily with revenues in excess of CAD$3.0 million and expected 2019 year over year growth of 20.0%. Draganfly management believes the Transaction will generate combined pro forma revenue of between CAD$6 to CAD$7 million for the fiscal year 2020, representing an increase in Draganfly’s revenue of between 23% and 43%.

• Strategically Positioned to Leverage Draganfly’s Brand: Dronelogics is a complementary business to Draganfly and the acquisition of Dronelogics will expand the product offering of Draganfly in the integration and engineering segments. This will expand Draganfly’s total addressable market and enhance its position as a leader in the UAV and UVS industry.

• Expanded Customer Base. Draganfly and Dronelogics have limited overlap in customer base representing an opportunity to cross sell the expanded product offerings and further customized solutions to existing clients.

• Established History of Providing Drone Services. Dronelogics has been in business for 10 years, working closely with Fortune 500 companies to provide insights into inventory metrics, asset management, volume-metric calculation and digitizing assets, among many other applications.

• Enhanced Management Expertise. The acquisition will add a team of 9 employees. Post-closing, Mr. Justin Hannewyk (“Mr. Hannewyk”) will be President of the operating subsidiary and will also be appointed to Draganfly’s board of directors. The Dronelogics employee base brings a wealth of industry experience and knowledge to Draganfly.

Cameron Chell, Chairman and CEO, stated, "We are excited to welcome the whole Dronelogics team as part of Draganfly. Dronelogics has established itself as a trusted drone service provider. Its business is highly complementary to our business and the combined entity will deliver an enhanced product and service offering to the combined client base. This transaction further establishes Draganfly as a leading, publicly traded drone company, and provides a strong platform for us to pursue continued consolidation in the industry. "