SASKATOON - Draganfly Inc. (NASDAQ: NASDAQ:DPRO), a developer of drone solutions, has teamed up with Nightingale Security to provide an automated drone-based monitoring system for a major oil and gas company. This collaboration aims to enhance the efficiency and safety of infrastructure monitoring in the sector.
The solution will utilize Draganfly's APEX UAV, equipped with a custom sensor package, including Optical Gas Imaging (OGI) and Tunable Diode Laser Absorption Spectroscopy (TDLAS), to allow real-time detection of leaks and structural issues. The first phase of sensor validation is complete, with field testing slated through the end of the year.
Nightingale's Drone in a Box software will be integrated in future project phases, enabling autonomous operation in challenging environments. This partnership is expected to improve operational oversight and risk reduction.
Jack Wu, CEO of Nightingale Security, emphasized their commitment to real-time situational awareness and Drone as a First Responder (DFR) missions. Cameron Chell, CEO of Draganfly, highlighted the project's potential to streamline monitoring and bolster safety and environmental compliance.
This announcement is based on a press release statement and should be considered with the understanding that forward-looking statements involve known and unknown risks. The actual future results of the company may differ from those projected.
In other recent news, Draganfly Inc., a leading drone solutions developer, has reported a series of significant developments. The company announced a robust increase in its Q2 2024 earnings, with organic revenue reaching $1.7 million, marking a 30% surge from the previous quarter and a gross profit of $461,000. Additionally, Draganfly secured approximately $2 million in funding through a unit sale to an institutional investor, with Maxim Group LLC serving as the placement agent.
The company also confirmed its previously announced share consolidation, set to take effect in September 2024 as part of strategic efforts to align its share structure. In board changes, Draganfly welcomed three new members, including Thomas Modly, former Under Secretary and Acting Secretary of the U.S. Navy. Furthermore, Draganfly was chosen by Mass General Brigham for drone delivery programs and signed a distributor in Australia, targeting military applications.
Draganfly also announced the launch of its new APEX drone, designed for defense use. The drone is set to debut at the Land Forces Conference in Melbourne, Australia. H.C. Wainwright recently upgraded its outlook on Draganfly, maintaining a Buy rating on the stock and significantly raising the price target. The firm suggests that the path to profitability for Draganfly will become more evident as the company begins to scale its revenue in the second half of 2024 and into 2025. Despite a challenging market and a working capital deficit of $3.7 million, Draganfly maintains an optimistic outlook for future growth.
InvestingPro Insights
As Draganfly Inc. (NASDAQ: DPRO) forges a significant partnership with Nightingale Security, aiming to revolutionize monitoring in the oil and gas industry, the financial metrics and market sentiment surrounding the company offer a mixed picture. With a market capitalization of 8.82 million USD, Draganfly stands as a small-cap entity in the drone technology market.
One of the key InvestingPro Tips for Draganfly highlights that the company holds more cash than debt on its balance sheet, which is a positive sign for investors concerned about the company's financial health. This liquidity could be crucial as the company invests in new projects and technologies like the automated drone-based monitoring system. On the other hand, analysts do not anticipate the company to be profitable this year, which is reflected in the negative P/E ratio of -0.37. This could be a point of consideration for investors looking at the long-term earning potential of the company.
The stock's performance has been notably volatile, with a significant return over the last week of 40.34%, yet it has experienced a sharp decline over the last year with a total return of -88.9%. This volatility is consistent with the InvestingPro Tip that Draganfly's stock generally trades with high price volatility. Investors interested in Draganfly may want to consider these fluctuations and the company's growth prospects as outlined by the analysts' sales growth anticipation for the current year.
For those looking for more in-depth analysis, there are additional InvestingPro Tips available on the platform, which could provide further insights into Draganfly's financial health and market performance.
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