Canadian drone maker Draganfly has raised $10 million from an unnamed US asset manager and Unusual Machines, an advisory firm linked to Donald Trump Jr. The company plans to use the funds for defense operations and general business needs. This follows a $50 million funding round in February, though Draganfly's stock has faced pressure, falling about 23% this year.
Draganfly, a Canadian business focused on drones and related software, has reached an agreement for a $10 million private investment. The funding is split equally, with $5 million coming from Unusual Machines, an advisory firm where Donald Trump Jr. serves as an advisor, and the remaining $5 million provided by an unnamed asset management firm based in the United States. The transaction price is set at $5.35 per share, reflecting the company’s closing valuation on September 25.
The company plans to use this capital to advance its proprietary defense technologies and support general working capital needs. Draganfly has previously supplied drones for public safety roles and humanitarian projects, including initiatives in Ukraine. This latest infusion follows a significant $50 million share offering completed in February, which was aimed at funding research and acquisition activities.
The defense and drone technology sector currently draws interest due to global security needs, yet stock performance across the industry has been mixed. Draganfly’s shares listed in New York have faced downward pressure, declining by approximately 23% so far this year. In contrast, Unusual Machines has seen its valuation increase by roughly 89% over the same period.
The involvement of high-profile figures in companies operating within the defense sector often attracts scrutiny regarding government procurement and potential governance conflicts. While such partnerships can provide necessary capital, investors typically monitor how these relationships influence long-term business strategy and contract awards. Neither the company nor representatives associated with the Trump family provided immediate comments regarding these broader governance questions.
For investors, the primary focus will remain on the company’s ability to execute its defense strategy using these funds. Following the substantial capital raise in February, the effectiveness of the current use of proceeds and its impact on the company's financial stability will be key factors to track in the coming quarters.