SCHEDULE: CVI Investments & Heights Capital Disclose Draganfly Stake

CVI Investments, Inc. and Heights Capital Management, Inc. have disclosed an 8.2% beneficial ownership stake in Draganfly Inc. through common shares issuable upon warrant exercise.

Summary

• CVI Investments, Inc. and Heights Capital Management, Inc. (collectively, 'Reporting Persons') have filed a Schedule 13G disclosing their beneficial ownership in Draganfly Inc.
• As of June 30, 2025, the Reporting Persons beneficially own an aggregate of 1,248,000 common shares of Draganfly Inc.
• This ownership represents 8.2% of Draganfly Inc.'s common shares outstanding.
• The beneficially owned shares consist of common shares issuable upon the exercise of warrants.
• The warrants include provisions limiting their exercisability to prevent beneficial ownership from exceeding 4.99% or 9.99% of the outstanding shares, in accordance with Section 13(d) of the Exchange Act.
• Draganfly Inc. had 13,967,978 common shares outstanding as of June 30, 2025, as reported in its Form 6-K filed on August 11, 2025.
• Heights Capital Management, Inc. serves as the investment manager to CVI Investments, Inc. and may exercise shared voting and dispositive power over the reported shares.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership, which is neutral in sentiment. The presence of a significant institutional investor can be seen as a positive signal, but the filing itself does not contain performance or operational updates.

Positives

• A significant institutional investor, CVI Investments, Inc., holds a substantial stake, potentially indicating confidence in Draganfly Inc.'s long-term prospects.
• The involvement of Heights Capital Management, Inc. as an investment manager suggests professional oversight and strategic interest in the investment.

Negatives

• The beneficial ownership is primarily through warrants, which introduces a layer of complexity and potential dilution upon exercise, though the filing does not specify the warrant terms (e.g., exercise price, expiry).

Risks

• The exercisability of warrants is subject to beneficial ownership limitations (4.99% and 9.99%), which could restrict the Reporting Persons' ability to fully convert their holdings if not managed carefully.
• Future exercise of warrants could lead to dilution for existing shareholders if the exercise price is below the market price at the time of exercise.

Future Outlook

This filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding Draganfly Inc.'s future performance or strategic direction.

Industry Context

This Schedule 13G filing indicates a significant institutional investment in Draganfly Inc., a company operating in the drone technology sector. Such disclosures are common for publicly traded companies and provide transparency regarding major shareholder positions. The investment by CVI Investments, Inc., managed by Heights Capital Management, Inc., suggests a belief in the long-term potential of Draganfly within the evolving UAV and related technology markets.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake provides transparency regarding the company's ownership structure. The potential exercise of warrants could lead to dilution.
• Company Management: Awareness of a large institutional holder may influence strategic decisions and communication.

Key Dates

Keywords

Draganfly Inc., CVI Investments Inc., Heights Capital Management Inc., Schedule 13G, Beneficial Ownership, Common Shares, Warrants, Institutional Investor, Drone Technology, UAV