OTTAWA – Just weeks after winning a lucrative government contract to supply thousands of drones to the Canadian Armed Forces, a Saskatchewan-based company announced a major investment from a high-profile American backer.
Draganfly, a leader in cutting-edge drone solutions, announced this week it received a $10-million investment from an unnamed American firm and Unusual Machines, a company backed by Donald Trump Jr.
The funding follows a five-year contract awarded in early September to supply thousands of drones to the Canadian Armed Forces.
“In response to rising demand for Draganfly’s proprietary products and technology in Canada and other allied countries, we have recently attracted investment to facilitate new hires and expand manufacturing capability,” the company said in a statement.
Draganfly added that no board seats or special rights were attached to the investments.
As trade tensions persist between Canada and the U.S., the federal government has set a goal to diversify defence procurement targeting 70 per cent of contracts to domestic companies.
“Look, they’re investing. What can I say?” Defence Minister David McGuinty said Tuesday. “The purpose is that we are building our Indigenous capacity here in Canada to stand up new tech, new drones, new systems.”
Alexander Salt, a senior researcher with the Canadian Global Affairs Institute, said there’s a long history of cross-border investment in the defence space.
“What is notable, though, is that smaller- to medium-sized Canadian firms operating in the defence sector are now attracting, I think, much greater international attention for capital investment because of there’s a lot of cutting-edge technology being developed in Canada at this time,” Salt said.
Retired general Rick Hillier said he had no concerns about U.S. investment in Canada.
“Let’s get competitive ourselves, let’s make sure the financing is available for those companies in the defence ecosystem who need it to produce the capabilities that Canada needs, that our allies need here in Canada,” Hillier said.
Draganfly says it plans to expand to Edmonton and Ottawa. It currently maintains its U.S. operations in Tampa, Fla.
In the last few months, the company has posted several videos online highlighting contracts with the United States, including its Department of Defense.
Trump did not respond to a request for comment.
