Draganfly announces share consolidation effective September 5 By Investing.com

VANCOUVER – Draganfly Inc. (NASDAQ: NASDAQ:), a developer of drone solutions and systems, has confirmed that its previously announced share consolidation will take effect on Tuesday, September 5, 2024. The company’s common shares will begin trading on a post-consolidation basis when markets open on that date, pending final confirmation from the Canadian Securities Exchange and Nasdaq.

The consolidation, which was approved by the company’s board of directors on August 23, 2024, will see common shares consolidated on the basis of one new share for every 25 existing shares. This move will result in a change of the CUSIP number to 26142Q304 and the ISIN to CA26142Q3044 for Draganfly’s common shares.

Draganfly, which has been recognized for over two decades as a leader in the technology sector, serves a variety of markets, including public safety, agriculture, and industrial inspections. The company emphasizes its commitment to providing efficient solutions and services with the aim of saving time, money, and lives.

The consolidation is part of the company’s strategic efforts to align its share structure and increase the attractiveness of its stock to investors. Details regarding the treatment of fractional shares and further effects of the consolidation can be found in the company’s August 23 release and the accompanying Q&A document provided on their investor relations website.

Investors and shareholders will receive a letter of transmittal to exchange their pre-consolidation shares for new shares. Draganfly has not disclosed any potential risks or uncertainties that may affect the consolidation process or its completion.

The information provided in this article is based on a press release statement from Draganfly Inc.

In other recent news, Draganfly Inc. secured approximately $2 million in funding through a unit sale to an institutional investor, with Maxim Group LLC serving as the sole placement agent. The company plans to utilize these funds for general corporate purposes, including growth initiatives, new product development, and potential acquisitions. In the earnings realm, Draganfly reported a substantial increase in its Q2 2024 earnings, with organic revenue reaching $1.7 million, a 30% increase from the previous quarter, and a gross profit of $461,000.

The company also announced significant board changes, welcoming three new members, including Thomas Modly, former Under Secretary and Acting Secretary of the U.S. Navy. In partnership news, Draganfly was selected by Mass General Brigham for drone delivery programs and has also signed a distributor in Australia. The company is focusing on military applications, a sector representing a $20 billion market opportunity.

Despite a challenging market and a working capital deficit of $3.7 million, Draganfly maintains an optimistic outlook for future growth, expecting to reach full production capacity by the end of 2024. Addressing bankruptcy concerns, the CEO stated the company is not at risk and mentioned potential for strategic alternatives such as mergers, but emphasized the current focus is on organic growth. These are recent developments in Draganfly’s operations.

InvestingPro Insights

As Draganfly Inc. (NASDAQ: DPRO) gears up for its share consolidation, investors are closely monitoring the company’s financial health and market performance. According to InvestingPro data, Draganfly currently has a market capitalization of approximately $10.45 million USD. This relatively small market cap suggests that the company is a micro-cap stock, which can often be subject to higher volatility. Indeed, Draganfly’s stock has experienced significant price volatility, as evidenced by a 1-week price total return of -21.74% and a 1-month price total return of -36.86%.

InvestingPro Tips highlight that Draganfly holds more cash than debt on its balance sheet, which is a positive indicator of the company’s liquidity and financial stability. This could be reassuring to investors considering the post-consolidation landscape. However, the company has been quickly burning through cash, which raises questions about its long-term financial sustainability.

Moreover, analysts anticipate sales growth in the current year, which may signal potential for revenue increases that could impact the stock positively. Yet, it is important to note that analysts do not anticipate the company will be profitable this year, and Draganfly has not been profitable over the last twelve months. This information is crucial for investors who are assessing the company’s future earnings potential and weighing the risks and rewards of investing in Draganfly’s stock.

For those seeking more in-depth analysis, there are additional InvestingPro Tips available for Draganfly, which can be accessed at https://www.investing.com/pro/DPRO. These tips could provide further insights into the company’s performance and help investors make more informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.