Chinese manufacturers have come to dominate the drone space, but with security concerns mounting, North American drone manufacturers could get a boost. Last week the Wall Street Journal reported the U.S. Department of the Interior grounded its 800-drone fleet pending a review of potential security risks. U.S. officials worry "the drones may be sending information back to the Chinese government or hackers elsewhere to use for cyberattacks or other offenses."
Also this year, the U.S. military, following Congressional legislation, has stopped buying Chinese-made drones. Even before that, "the Pentagon had already banned purchases of commercial, off-the-shelf drones until it can determine how to mitigate security risks, including when drones are used for surveillance of military installations and critical infrastructure," the Journal reported.
Draganfly, as a North American company, could benefit from the security concerns over Chinese drones. The firm has a 21-year history in the fast moving small Unmanned Aerial Vehicle (sUAV) space, developing one of the first quad rotor helicopter systems in 1998 and the first folding, semi-autonomous, six rotor systems in 2008. Its drones serve the public safety, agriculture, industrial inspections, and mapping and surveying markets, and Draganfly has sold over 9,000 drones all over the world.
"Draganfly has the opportunity for significant organic growth as few North American proprietary drone systems companies still exist, much less ones with the history, experience, or IP that Draganfly has," Chairman Cameron Chell recently wrote in a letter to shareholders.
"With the Draganfly public offering, we now have the opportunity to consolidate the leading small/medium drones solution companies in North America," Chell stated. "The net of all of this is that a massive market has opened up for North American based drone tech companies and Draganfly is positioned to become a dominant leader in this multi-billion dollar market."
Draganfly recently completed a private placement financing, raising aggregate gross proceeds of over CA$7 million. One subscription receipt, at a price of CA$0.50, converts to one common share plus one transferable common share purchase warrant that entitles the holder to purchase one common share at CA$0.50 for a 12-month period. With the financing closing, Draganfly has approximately 69.6 million shares issued and outstanding.
The company announced that it also plans to list on the U.S. OTC market and Frankfurt exchanges within the next month.
Draganfly video is available here.[NLINSERT]
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