Why Draganfly (DPRO) Shares Are Down Nearly 50%
Portfolio Pulse from Henry Khederian
Draganfly Inc. (NASDAQ:DPRO) shares plummeted by 48.4% to $0.18 after announcing a $3.6 million underwritten public offering at $0.27 per unit. The offering includes 13.4 million units, each comprising one common share (or pre-funded warrant) and one warrant to purchase one common share at $0.36, expiring in five years. Maxim Group LLC is managing the offering, with proceeds aimed at general corporate purposes, including product development and potential acquisitions. The offering is expected to close by February 26, subject to regulatory approvals.
February 22, 2024 | 4:16 pm
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Draganfly Inc. shares dropped significantly following the announcement of a $3.6 million underwritten public offering, priced below the current market value.
The significant drop in Draganfly Inc.'s stock price is directly related to the announcement of its underwritten public offering, which is priced below its recent trading price. This often leads to a negative perception among investors, as it dilutes current shareholders' equity and may indicate the company's need for cash. The short-term impact is likely negative due to these factors.
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IMPORTANCE 90
RELEVANCE 100