From today’s pre-market movers, perhaps the biggest winner has been Draganfly Inc. (DPRO), which climbed almost by 90% in price. This jump comes amidst a broader, month-long bullish rise, causing the stock to appreciate by over 40% during this time. The reason for the positive market performance for the unmanned drone manufacturer was the Russian invasion of Ukraine, this month. The tensions leading up to the crisis heightened the perceived demand for drone products for various logistics, reconnaissance, and armed purposes. The sweeping increase was a phenomenon that had engulfed stocks of drone manufacturers across the globe, which clearly impacted DPRO.
Order for Draganfly Drones by Revived Soldiers Ukraine (RSU)
Earlier today, Draganfly had communicated a large order from the US-funded non-profit organization Revived Soldiers Ukraine for use in Ukraine. The RSU ordered up to 200 units of Draganfly drones for use in critical lifesaving operations. From these, 10 drone systems are to be dispatched with immediate effect. Specifically, the drone order was placed for use in medicine as well as search and rescue missions, in the conflict.
The reason for opting for Draganfly, a Canadian drone manufacturer had been strategic, on the part of RSU. The drone device hardware is one that ensures data security and comes equipped with innovative features. For instance, the temperature control option, and payload capacity make Draganfly drones ideal for medical RSU missions in Ukraine.
Implications for DPRO and Future Prospects
The order placed for Draganfly drones by the RSU is one that significantly boosts the company’s brand value and potential for profitability. This clearly reflects in the stock’s ballooning in this morning’s premarket session. It further signifies a shift for Draganfly drone deployment in the context of military conflicts. This comes despite not being an armed aerial vehicle.
With tensions in Europe increasingly escalating, and EU countries increasing their defense budgets, the demand for Draganfly drone systems could potentially be on a high rise. Market participants are optimistic of the view that the DPRO order is the first step of a larger growth shift.
DPRO flew high earlier today, with a critical order of its drone devices by the RSU for use in Ukraine. Although not used in an armed capacity, the order holds significant brand value for DPRO. Market participants anticipate high growth value, which explains the price shoot up.