Drone Delivery Canada (TSXV:FLT) closed a financing deal today that yielded C$10 million (a Canadian dollar currently is valued at US$0.75). This occurred a little more than a month after the company unveiled its largest cargo drone to date.
Drone Delivery Canada (DDC) issued 8.35 million units priced at C$1.20, underwritten by GMP Securities, Canaccord Genuity and Echelon Wealth Partners.
The company increased the original offering from 6 million units at C$1.20, worth C$7.2 million, because of high demand.
Toronto-based DDC unveiled its latest cargo drone in February, named the Condor. The 22-foot-long gasoline-powered drone can deliver up to 400 pounds of cargo 124 miles away and is capable of vertical take-offs and landings.
“The global application for the Condor is virtually limitless. As such, the Condor is a big part of the future of DDC’s commercial operations. Having the ability to move heavy cargo long distances is a significant milestone for us that opens up many potential commercial opportunities in both Canadian as well as international markets,” Tony Di Benedetto, CEO of Drone Delivery Canada, said in February.
The Condor is slated to begin flight testing during the third quarter of this year. The company began testing another model, the Falcon, in January, which can carry 50 pounds up to 37 miles.
DDC is developing drones to use with its property logistics platform for both corporate and government clients.
The company currently provides delivery services to the Moose Cree First Nation in Northern Ontario.
DDC hopes to expand its reach to 200 remote communities across Canada in the next five years.