Key 5 Points To Consider Before Investing in Draganfly Inc. (CSE:DFLY)(OTCQB:DFLYF)
- on Januatry16th, Draganfly acquired Dronelogics Systems – this is expected to boost the company’s combined pro forma revenue to C$6-C$7 million for the fiscal year 2020.
- As we all know, the majority of drones manufactured by Chinese companies had been used extensively by the defense forces in the United States for many years. However, the government has now deemed those drones to be a national security threat and has opened up a massive opportunity for American companies like Draganfly.
- Draganfly holds the distinction of having manufactured the first quadcopter drone and the first drone that actually saved a life.
- The world drone technology market is expected to grow at one of the fastest paces in the coming years. Annual market size is projected to leap from $23 billion last year to an astonishing $145 billion by 2025.
- Draganfly has been consistently focusing on introducing new products as the market requirement. On January 22nd, the company announced three new payload offerings for the agricultural industry.
Draganfly Inc’s (CSE:DFLY)(OTCQB:DFLYF) stock has been trading within a narrow of over the past few weeks, meaning the stock has been consolidating.
Considering the RSI is trading in the oversold zone, the stock may witness a quick bounce in the coming sessions.
The stock has shown a solid base at C$0.52 – which could be the next key support. On the higher side, DFLY’s stock may not face any major hurdle before $0.72-$0.76.
Draganfly is Making Consistent efforts to Become a Key Player in the Drone Industry
Draganfly
It is now a well-known fact that drones are no longer only needed by the different armies in the world. Drones are now increasingly being used for commercial purposes by a variety of industries, and one of the companies that is a pioneer in this space is Draganfly Inc. (CSE:DFLY)(OTCQB:DFLYF).
The company was established way back in 1998 as the world’s first commercial vehicle company, and since then, it has not looked back. The company holds the distinction of having manufactured the first quadcopter drone and the first drone that actually saved a life.
On the other hand, a drone made by Draganfly was the first drone to be inducted into the prestigious Smithsonian Air and Space Museum. Draganfly has grown into one of the notable names in the industry, having developed a variety of drones for different purposes.
Starting from delivery drones, to those meant for defense and detection, Draganfly has built them all. It has delivered its products to both the government as well as to businesses.
Things to Keep in Mind about Draganfly
Range of Drones- One of the most important things to keep in mind with regards to Draganfly is the sheer range of products that the company offers. It has created products for the military as well as for public safety and product delivery. Some of its best-known products include the Draganfly Commander, the Dragan Scout, and the Draganfly Tango. These are products that help the company in covering all the important bases in the drone space and allow it to deal with a wide range of clients.
Industry Opportunity
It is a well-known fact that drones manufactured by Chinese companies had been used extensively by the defense forces in the United States for many years. However, the government has now deemed those drones to be a national security threat and has opened up a massive opportunity for American companies like Draganfly.
This is an opportunity that could see the company becoming one of the key players in the defense and detection of drone space in the coming years. Research firms forecast that the commercial drone space could grow into a $145 billion industry in 2025. On the military front, the United States Department of Defense raised its budgets for unarmed aircraft systems from $7.5 billion in 2018 to $9.39 billion in 2019.
Growth Through Acquisition
Another major event that could propel the growth of Draganfly is its decision to acquire Dronelogics Systems Inc on January 16th. It will expand the product offerings significantly, and in addition to that, it will also bring in the Fortune 500 clients that Dronelogics had been serving over the years.
Dronelogics has been growing consistently with revenues in excess of CAD$3.0 million and expected 2019 year over year growth of 20.0%. Draganfly management believes the transaction will generate combined pro forma revenue of between CAD$6 to CAD$7 million for the fiscal year 2020, representing an increase in Draganfly’s revenue of between 23% and 43%.
Cameron Chell, Chairman and CEO, stated, “We are excited to welcome the whole Dronelogics team as part of Draganfly. Dronelogics has established itself as a trusted drone service provider. Its business is highly complementary to our business and the combined entity will deliver an enhanced product and service offering to the combined client base. This transaction further establishes Draganfly as a leading, publicly traded drone company, and provides a strong platform for us to pursue continued consolidation in the industry. “
As many as nine employees will be added after the acquisition is completed. More importantly, there is very little overlap in terms of clients between the two companies. Hence, the acquisition could potentially add a significant new customer base for Draganfly.
Consistent Products Expansion
On January 22nd, the company announced that it produced three new payload offerings. Draganfly revealed that the new offerings could be used in the agricultural industry by helping expand research significantly.
The new products can also be used to help with monitoring the environment. It is well known that monitoring of the environment can often prove to be a vital element of the agricultural industry.
Management
All companies need able management if they are to grow, and in that regard, Draganfly is blessed.
The founder and chairman of the company, Cameron Chell, is a highly experienced executive who has worked in the business development space all over the world. He has steered the ship effectively throughout the course of his tenure.
Another key executive at Draganfly is the Chief Operating Officer Patrick Imbasciani, who has experience spanning two decades in the United States and the rest of the world. He served in the United States Marine Corps for eight years. Previously he worked as the Senior Director of International Business Development of PrecisionHawk. He has extensive experience in the drone industry from his time at PrecisionHawk.
Paul Sun, the Chief Financial Officer at Draganfly, is also a highly experienced executive, who has held a range of senior roles at some of the leading investment banks. He has worked for Scotia Capital and Beacon Securities, among others. He has been instrumental in providing capital to new startups as well as to established companies with market caps running into billions.
Last but not least, Zenon Dragan is possibly one of the most important members of the company’s management. He was one of the founders of the company and went on to win many awards for his stellar work as well. His expertise and experience in the industry have been one of the key reasons behind the company’s remarkable growth.
Conclusion
Draganfly Inc. (CSE:DFLY)(OTCQB:DFLYF)was listed in the capital markets only recently, and it goes without saying that it is still early days for the company. However, it is also important to note that the company is pushing hard to grow quickly in the near term through product expansion, innovation and acquisition. Investors could keep an eye on DFLY’s stock over the coming period.
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