Draganfly receives $10-million investment from Donald Trump Jr.-backed firm
The Canadian drone maker says it will use the funds to accelerate development and for working capital.
TORONTO — Canadian drone developer Draganfly Inc. says it has received a US$10-million investment from an unnamed U.S. asset management company and Unusual Machines Inc., a company linked to Donald Trump Jr.
Draganfly said on Monday it would use the proceeds to accelerate the development of advanced strategic capabilities and to fund general working capital needs.
Unusual Machines, which counts Trump Jr. as a member of its advisory board, and the unnamed U.S. asset management company are each investing US$5 million.
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Draganfly chairman and CEO Cameron Chell said the company is seeing the convergence of customer adoption, government procurement, domestic manufacturing, defence autonomy and strategic industry participation.
The investment is based on Draganfly's closing share price of US$5.35 on Sept. 25 and is expected to close by around Sept. 30.
Draganfly's New York-listed shares were up 5.2 per cent in pre-market trading following the announcement.
Shares in the company were up 52 cents or about seven per cent at C$8.02 in trading on the Canadian Securities Exchange.
The Trump family's investments in several companies have drawn scrutiny amid concerns about potential conflicts of interest, particularly its stakes in defence firms that regularly compete for government contracts.
Donald Trump Jr. and his brother Eric Trump have also backed Israeli drone-maker XTEND and Powerus.
Trump Jr. did not immediately respond to a Reuters request for comment.
Unusual Machines is known for its drone motors and other control components.
Draganfly develops and manufactures unmanned aircraft systems and related software for defence, public safety, agriculture and industrial inspection markets.
The company has supplied drones to Ukraine, where its systems have been used for mapping, humanitarian and other missions.
In February, it raised US$50 million via a share offering to fund growth plans, working capital, deals and development.
Draganfly's New York-listed shares have fallen about 23 per cent so far this year, up to Friday's close, while those of Unusual Machines have surged about 89 per cent.
Reuters was the first to report the investment.
Unusual Machines named the U.S. president's son to its advisory board in November 2024.
With files from The Canadian Press, The Globe and Mail and BNN Bloomberg