SASKATOON - Draganfly Inc. (NASDAQ: NASDAQ:DPRO), a developer of drone solutions and systems, announced changes to its leadership team, including the appointment of former White House Chief of Staff Andy Card to its Advisory Board. The company also named Kim Moody as the new Audit Chair, succeeding Olen Aasen who is stepping down after more than five years of service.
Card, known for his tenure as Chief of Staff under President George W. Bush from 2000 to 2006, brings a wealth of leadership experience from both government and industry roles. His return to Draganfly is expected to provide valuable insights as the company seeks to expand its presence in the unmanned aerial vehicle (UAV) industry.
Moody, the founder of Moodys Private Client LLP, comes with a strong background in tax advisory, accounting, and financial governance. Draganfly CEO Cameron Chell expressed gratitude to Aasen for his contributions and welcomed Moody's (NYSE:MCO) expertise to the role.
In addition to these changes, Julie Myers Wood, CEO of Guidepost Solutions, is set to lead the Compensation Committee. Wood's extensive experience in regulatory and enforcement issues is anticipated to be an asset to the company. Tim Dunnigan, CEO & President of MMS Products, Inc., and a retired U.S. Army Infantry Officer, will join the Audit Committee, bringing defense technology and leadership experience. Thomas B. Modly, former Acting Secretary of the Navy, will serve on both the Audit and Nominating Committees, contributing his defense operations and audit expertise.
Chell underscored the importance of these appointments, highlighting the added defense and government expertise as pivotal for Draganfly's growth in defense applications and national security challenges.
Draganfly has been recognized for over 24 years as a leader in the drone industry and continues to serve various markets, including public safety, agriculture, and security. The company aims to deliver efficient solutions that save time, money, and lives.
These leadership changes are based on a press release statement and reflect Draganfly's strategy to bolster its board with individuals who have substantial experience in government and defense sectors.
In other recent news, Draganfly Inc. reported a robust Q2 2024 earnings increase, with revenue reaching $1.7 million, marking a 30% surge from the previous quarter, and a gross profit of $461,000. The drone solutions developer also secured approximately $2 million in funding through a unit sale to an institutional investor, with Maxim Group LLC acting as the placement agent. In collaboration with TB2 Aerospace, Draganfly's Commander 3XL drones were selected for deployment within the Department of Defense. The drones are expected to reduce operational and training costs for the Department of Defense.
The company also announced a strategic partnership with Nightingale Security to provide an automated drone-based monitoring system for a major oil and gas company. In addition, Draganfly launched 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. 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. These are some of the recent developments in Draganfly's operations.
InvestingPro Insights
As Draganfly Inc. (NASDAQ: DPRO) reshapes its leadership team with high-profile appointments, investors might be curious about the company's financial health and market performance. According to InvestingPro data, Draganfly's market capitalization stands at $11.87 million USD, reflecting its current position in the drone solutions market.
Despite the impressive additions to its board, Draganfly faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern for investors considering the capital-intensive nature of the drone industry. This cash burn rate may explain why another InvestingPro Tip notes that "analysts do not anticipate the company will be profitable this year."
On a positive note, Draganfly's stock has shown a "significant return over the last week," with a 23.66% price total return in the past week and a strong 42.11% return over the last month. This recent uptick could be a market response to the announced leadership changes, suggesting investor optimism about the company's new direction.
However, it's important to note that Draganfly's revenue for the last twelve months as of Q2 2024 was $4.47 million USD, with a revenue growth of -8.58% over the same period. This decline in revenue, coupled with an operating income margin of -252.66%, underscores the challenges the company faces as it seeks to capitalize on its new leadership expertise.
For investors looking for a more comprehensive analysis, InvestingPro offers 16 additional tips on Draganfly, providing a deeper understanding of the company's financial position and market prospects.
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