A Draganfly drone takes off as part of a demonstration in Dmytrivka, Ukraine, in 2022. The company develops and manufactures unmanned aircraft systems and related software for defence and other sectors.Anton Skyba/The Globe and Mail
Donald Trump Jr.-backed Unusual Machines UMAC-A and an unnamed U.S. asset management company have invested US$10-million in Canadian drone services firm Draganfly DPRO-CN, as defence sector investments gather pace amid persistent geopolitical tensions.
Draganfly said on Monday it would use the proceeds to accelerate the development of advanced strategic capabilities and to fund general working capital needs. Reuters was the first to report the investment.
Draganfly’s New York-listed shares DPRO-Q were up 5.2 per cent in pre-market trading.
Ottawa awards first drone contracts worth up to $50-million through new marketplace
Unusual Machines, which counts Trump Jr. as a member of its advisory board, is known for its drone motors and other control components.
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.
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.
The investment by Unusual Machines and the asset management company is based on Draganfly’s closing price of US$5.35 on Sept. 25, the company said, and is expected to close by around Sept. 30.
Unusual Machines and the asset management company will invest US$5-million each.
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.
More Stories
AI agents booking doctor’s appointments: Inside PocketHealth’s drive to improve patient care
Nvidia unveils security platform to stop AI agents from going rogue
U.S., China each cut tariffs on $30-billion of products after Trump-Xi meeting