Canada's Small Cap Drone Industry

A lesson in dilution and value destruction - FinsDontLie Scholastic Series #5

Not all dilution should be viewed with the same lens. Often companies with great ideas will require funding in order to create future value for shareholders. When? How? How much? How often? All are important questions and considerations for investors to consider. Most retail investors don’t pay enough attention, ask themselves nor management those questions. In most cases, bullish retail investors will perform as much mental gymnastics as necessary to rationalize any scenario.

I’ve had this article in the mental hopper for sometime. I’ve just needed a catalyst to provide the inspiration (read frustrate & anger) in order to write it. This is where my two recent reviews of Volatus Aerospace and Draganfly Inc. come in. I’ve put out a lot of content over the past five or six years. Not only reviews, but posts to social media and various stock boards too. When researching my Volatus article over the weekend I came upon this Twitter thread I posted back in December of 2022. At the time I thought Volatus Aerospace looked interesting and was trying to justify why they were valued less than their small cap competitor, Draganfly.

Let’s compare the above metrics to where they sit today.

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