Sept 28 : Donald Trump Jr.-backed Unusual Machines and an unnamed US asset management company have invested $10 million in Canadian drone services firm Draganfly, as defense sector investments gather pace amid persistent geopolitical tensions.
Draganfly said on Monday it would use the proceeds to accelerate the development of advanced strategic capabilities and to fund general working capital needs. Reuters was the first to report the investment.
Draganfly's New York-listed shares were up 5.2 per cent in pre-market trading.
Unusual Machines, which counts Trump Jr. as a member of its advisory board, is known for its drone motors and other control components.
Guess WordCrack the word, one row at a timeBuzzwordCreate words using the given lettersMini SudokuTiny puzzle, mighty brain teaserMini CrosswordSmall grid, big challengeWord SearchSpot as many words as you can Show More Show LessThe Trump family's investments in several companies have drawn scrutiny amid concerns about potential conflicts of interest, particularly its stakes in defense firms that regularly compete for government contracts.
Donald Trump Jr. and his brother Eric Trump have also backed Israeli drone-maker XTEND and Powerus.
Trump Jr. did not immediately respond to a Reuters request for comment.
Draganfly develops and manufactures unmanned aircraft systems and related software for defense, public safety, agriculture and industrial inspection markets.
The company has supplied drones to Ukraine, where its systems have been used for mapping, humanitarian and other missions.
In February, it raised $50 million via a share offering to fund growth plans, working capital, deals and development.
The investment by Unusual Machines and the asset management company is based on Draganfly's closing price of $5.35 on September 25, the company said, and is expected to close by around September 30.
Unusual Machines and the asset management company will invest $5 million each.
Draganfly's New York-listed shares have fallen about 23 per cent so far this year, up to Friday's close, while those of Unusual Machines have surged about 89 per cent.