SCHEDULE 13G: Intracoastal Capital and Affiliates Disclose 4.99% Stake in Draganfly Inc. Following Securities Purchase Agreement

Intracoastal Capital LLC, Mitchell P. Kopin, and Daniel B. Asher have filed a Schedule 13G, reporting beneficial ownership of 4.99% of Draganfly Inc.'s common shares as of June 13, 2025, following a recent Securities Purchase Agreement.

Summary

• Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC (collectively, the "Reporting Persons") have filed a Schedule 13G regarding their beneficial ownership in Draganfly Inc.
• As of June 13, 2025, the Reporting Persons collectively beneficially own 670,154 common shares of Draganfly Inc., representing 4.99% of the class.
• This ownership is primarily through shares issuable upon exercise of "Intracoastal Warrant 1".
• Immediately following the Securities Purchase Agreement (SPA) on June 11, 2025, the Reporting Persons were deemed to beneficially own 800,000 shares, representing approximately 9.9% of the common stock, based on 7,259,793 shares outstanding prior to the SPA plus the 800,000 shares issued at closing.
• The reported beneficial ownership is limited to 4.99% due to blocker provisions in Intracoastal Warrant 1, Intracoastal Warrant 2 (232,000 shares), and Intracoastal Warrant 3 (22,000 shares), which prevent exercise if it would result in ownership exceeding 4.99%.
• Without these blocker provisions, the Reporting Persons would have been deemed to beneficially own 1,854,000 shares immediately after the SPA, and 1,054,000 shares as of June 13, 2025.
• The filing states that the securities were not acquired for the purpose of changing or influencing control of Draganfly Inc.

Sentiment

Score: 5

Explanation: The document is a factual regulatory filing (Schedule 13G) reporting beneficial ownership. It does not contain subjective language or performance data that would indicate a strong positive or negative sentiment. The capital raise itself could be seen as positive for the company, but the filing is neutral in tone.

Positives

• The filing indicates a recent capital infusion into Draganfly Inc. through a Securities Purchase Agreement, which included the issuance of 5,500,000 common shares.
• The Reporting Persons' acquisition of shares is stated not to be for the purpose of changing or influencing control of the issuer, suggesting a passive investment.

Negatives

• The issuance of 5,500,000 new common shares as part of the Securities Purchase Agreement implies significant dilution for existing shareholders.

Risks

• The presence of "blocker provisions" in warrants (Intracoastal Warrant 1, 2, and 3) limits the beneficial ownership of the Reporting Persons to 4.99% of the common stock, which could restrict their ability to increase their stake beyond this threshold without triggering additional reporting requirements or control implications.

Future Outlook

NA

Industry Context

This Schedule 13G filing is a standard regulatory disclosure indicating a significant ownership stake by an investment entity in a publicly traded company. It reflects an investment decision by Intracoastal Capital LLC and its affiliates in Draganfly Inc., a company whose business activity is not detailed in this specific filing but is known to be in the drone technology sector. Such filings are common for institutional investors acquiring substantial, but non-controlling, positions.

Stakeholder Impact

• Shareholders: The issuance of 5,500,000 new common shares as part of the Securities Purchase Agreement will result in dilution of existing shareholders' ownership percentage.
• Shareholders: The entry of Intracoastal Capital LLC as a significant shareholder (albeit limited to 4.99% beneficial ownership due to blocker provisions) introduces a new institutional investor to the company's shareholder base.

Key Dates

Keywords

Draganfly Inc., Schedule 13G, Beneficial Ownership, Intracoastal Capital LLC, Mitchell P. Kopin, Daniel B. Asher, Common Shares, SEC Filing, Securities Purchase Agreement, Warrants, Dilution