SCHEDULE: Draganfly Inc. Ownership Update: CVI Investments & Heights Capital

CVI Investments, Inc. and Heights Capital Management, Inc. report a combined 4.9% beneficial ownership of Draganfly Inc. common shares, primarily through warrants.

Summary

• CVI Investments, Inc. and Heights Capital Management, Inc. have filed a Schedule 13G, indicating their beneficial ownership of Draganfly Inc. common shares.
• The total beneficial ownership reported is 1,950,579 shares, representing 4.9% of the class.
• This ownership is primarily derived from warrants to purchase shares, with a cap on exercisability to not exceed 9.99% beneficial ownership.
• As of June 30, 2026, Draganfly Inc. had 37,148,523 shares outstanding.
• Heights Capital Management, Inc. acts as the investment manager for CVI Investments, Inc. and may exercise voting and dispositive power over the reported shares.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as neutral to slightly negative, as it primarily reports on beneficial ownership changes and does not contain operational or financial performance updates.

Positives

• The filing clarifies the ownership structure and beneficial interest in Draganfly Inc. by CVI Investments, Inc. and Heights Capital Management, Inc.
• The reporting entities are acting within regulatory requirements by filing this Schedule 13G.
• The ownership stake is below the 9.99% threshold that would trigger further restrictions on warrant exercise.

Negatives

• The filing does not provide any information on the company's operational performance, financial health, or future prospects.
• The ownership is primarily through warrants, which are contingent on future exercise and market conditions.
• The filing indicates a potential for increased ownership by these entities, but the exact intentions are not disclosed.

Risks

• The reliance on warrants for ownership means that the actual number of shares held can fluctuate based on market conditions and the 9.99% ownership cap.
• Future exercise of warrants could lead to dilution if not managed carefully by the company.
• Significant holdings by investment entities could lead to pressure on management for strategic changes.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding Draganfly Inc.'s future performance or strategic direction. It only pertains to the reporting of beneficial ownership.

Management Comments

• Heights Capital Management, Inc. serves as the investment manager to CVI Investments, Inc. and as such may exercise voting and dispositive power over the shares reported as beneficially owned by CVI Investments, Inc. herein.
• Each of the Reporting Persons hereby disclaims any beneficial ownership of any such Shares, except for their pecuniary interest therein.

Industry Context

StockSavvy.ai notes that Schedule 13G filings are routine disclosures for institutional investors crossing certain ownership thresholds. This filing indicates a significant, though not controlling, stake in Draganfly Inc. by investment entities, which is common in the technology and drone industry where companies often seek external investment.

Comparison to Industry Standards

• Institutional ownership of 4.9% is a common threshold for Schedule 13G filings, indicating a passive investment approach rather than active control.
• The use of warrants is a standard financial instrument for investment firms, allowing for potential upside participation while managing initial capital outlay.
• Companies in the aerospace and drone sector, like Draganfly Inc., often see such filings from investment firms such as CVI Investments and Heights Capital Management, which specialize in venture and growth-stage companies.

Stakeholder Impact

• Shareholders: The filing provides transparency on significant beneficial ownership, which can influence investor perception. The potential exercise of warrants could lead to dilution.
• Management: The increased visibility of a substantial beneficial owner may lead to increased scrutiny or engagement regarding company strategy.
• Creditors: No direct impact is indicated, as the filing does not concern debt or financial distress.

Next Steps

• The reporting persons will continue to monitor their beneficial ownership levels in Draganfly Inc.
• Further filings may be required if ownership levels change significantly or cross the 9.99% threshold.

Key Dates

Keywords

Draganfly Inc., Schedule 13G, Beneficial Ownership, CVI Investments, Heights Capital Management, Warrants, Shareholder