SASKATOON – Draganfly Inc. (NASDAQ: DPRO), a developer of drone solutions, has partnered with Nightingale Security to deliver an automated drone-based monitoring system for a leading oil and gas company. This collaboration is aimed at improving the efficiency and safety of infrastructure monitoring within the industry.
The newly developed monitoring solution will incorporate Draganfly’s APEX UAV, which is outfitted with a custom sensor package that includes Optical Gas Imaging (OGI) and Tunable Diode Laser Absorption Spectroscopy (TDLAS). These technologies will facilitate the real-time detection of leaks and structural issues. The first phase of sensor validation has been completed, with field testing expected to continue through the end of the year.
Future phases of the project will integrate Nightingale’s Drone in a Box software, allowing for autonomous operation in challenging environments. The partnership is anticipated to enhance operational oversight and reduce risks.
Jack Wu, CEO of Nightingale Security, emphasized their commitment to real-time situational awareness and Drone as a First Responder (DFR) missions. Cameron Chell, CEO of Draganfly, highlighted the project’s potential to streamline monitoring processes and improve safety and environmental compliance.
This announcement comes with a caveat that forward-looking statements involve known and unknown risks, and actual future results may differ from those projected.
In related news, Draganfly Inc., noted for its drone technology solutions, has reported several significant developments. The company disclosed a robust increase in its Q2 2024 earnings, with organic revenue reaching $1.7 million, a 30% rise from the previous quarter, and a gross profit of $461,000. Draganfly also procured about $2 million in funding via a unit sale to an institutional investor, with Maxim Group LLC acting as the placement agent.
Further strategic moves include a share consolidation scheduled for September 2024, aimed at aligning the company’s share structure. Additionally, Draganfly has welcomed three new board members, including Thomas Modly, the former Under Secretary and Acting Secretary of the U.S. Navy. The company has been selected by Mass General Brigham for drone delivery programs and has signed a distributor in Australia focusing on military applications.
Draganfly has also launched the APEX drone, tailored for defense use, which will debut at the Land Forces Conference in Melbourne, Australia. Recently, H.C. Wainwright upgraded its outlook on Draganfly, maintaining a Buy rating on the stock and significantly increasing the price target. The firm suggests that Draganfly’s path to profitability will become clearer as revenue scales in the latter half of 2024 and into 2025. Despite facing a challenging market and a working capital deficit of $3.7 million, Draganfly remains optimistic about future growth.
InvestingPro Insights
As Draganfly Inc. (NASDAQ: DPRO) partners with Nightingale Security to revolutionize monitoring in the oil and gas sector, the company’s financial metrics and market sentiment offer a mixed picture. With a market capitalization of 8.82 million USD, Draganfly is classified as a small-cap entity in the drone technology market.
According to InvestingPro Tips, Draganfly holds more cash than debt on its balance sheet, a positive indicator for investors focused on the company’s financial health. This liquidity is essential as Draganfly invests in new projects, including the automated drone-based monitoring system. However, analysts do not expect profitability this year, as reflected in the negative P/E ratio of -0.37, which might concern long-term investors.
The stock’s performance has been notably volatile, with a substantial return of 40.34% over the past week, juxtaposed against a sharp decline of -88.9% over the past year. This volatility aligns with the InvestingPro Tip highlighting the stock’s high price volatility. Investors might consider these fluctuations alongside the company’s growth prospects, as indicated by analysts’ sales growth projections for the current year.
For a more in-depth analysis, additional InvestingPro Tips are available on the platform, offering further insights into Draganfly’s financial health and market performance.
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