Why Draganfly (DPRO) Shares Are Down Nearly 50%

Draganfly Inc. DPRO shares are trading lower by 48.4% to $0.18 during Thursday’s session after the company announced pricing of a $3.6 million underwritten public offering.

The public offering of 13.4 million units at $0.27 per unit totals approximately $3.6 million in gross proceeds. Each unit includes one common share (or pre-funded warrant) and one warrant to purchase one common share at $0.36 with a five-year expiration.

Maxim Group LLC is the sole book-running manager. Draganfly intends to use the net proceeds for general corporate purposes, including product development, growth initiatives, working capital, potential acquisitions and research and development.

The offering is expected to close around February 26, subject to customary closing conditions and regulatory approvals.

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How To Buy DPRO Stock

By now you're likely curious about how to participate in the market for Draganfly – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Draganfly, which is trading at $0.18 as of publishing time, $100 would buy you 555.56 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, DPRO has a 52-week high of $2.45 and a 52-week low of $0.17.