Canadian drone services company Draganfly has secured a US$10 million investment from Unusual Machines, a drone component maker backed by Donald Trump Jr., and an undisclosed U.S. asset management firm, as investor interest in the defense sector continues to build amid ongoing global tensions.
Draganfly said on Monday it would use the proceeds to speed up development of advanced strategic capabilities and to support general working capital needs. Reuters was first to report the investment. Following the news, Draganfly’s New York-listed shares rose 5.2 per cent in pre-market trading.
Unusual Machines and the unnamed asset manager are each contributing US$5 million to the deal. The investment is based on Draganfly’s closing share price of $5.35 on September 25, and the transaction is expected to close around September 30, according to the company.
Trump Family Ties Draw Scrutiny
Unusual Machines, which makes drone motors and other control components, counts Donald Trump Jr. as a member of its advisory board. The Trump family’s growing footprint in the defense investment space has drawn attention over potential conflicts of interest, particularly because some of the companies it has backed compete for government contracts. Trump Jr. and his brother Eric Trump have previously invested in Israeli drone maker XTEND and in a company called Powerus. Trump Jr. did not immediately respond to a request for comment from Reuters.
Draganfly’s Ukraine Work and Recent Fundraising
Draganfly develops unmanned aircraft systems and related software used across defense, public safety, agriculture and industrial inspection markets. The company has supplied drones to Ukraine, where its systems have supported mapping, humanitarian and other missions.
This is not Draganfly’s first capital raise this year. In February, the company raised $50 million through a share offering intended to fund growth plans, working capital, potential deals and further development.
Diverging Stock Performance
Despite the fresh investment, Draganfly’s New York-listed shares have fallen roughly 23 per cent so far this year through Friday’s close. By contrast, shares of Unusual Machines have surged about 89 per cent over the same period.
The latest capital injection comes as defense-related investment activity picks up more broadly amid persistent geopolitical tensions, with drone technology drawing particular interest from both private and government-linked investors.
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