Volatus Aerospace Secures Major Funding for Defense Sector Push

Canadian drone technology company Volatus Aerospace has taken a decisive step toward strengthening its financial position by filing final prospectus documents for a substantial capital raise. The financing initiative, targeting approximately $20 million, is strategically positioned to accelerate the firm's expansion within the defense industry.

The company plans to issue 33.35 million new common shares at a price of $0.60 per share. This public offering is being managed by a banking syndicate led by Stifel Nicolaus Canada Inc.

Gross proceeds from this issuance are expected to reach $20.01 million. Concurrently, Volatus Aerospace is conducting a separate, non-brokered private placement. This parallel offering could see up to 7.77 million additional shares issued at the same $0.60 price, potentially generating a further $4.66 million.

Key offering details include:
* Share price: $0.60 per common share
* Brokered offering: 33.35 million shares ($20.01 million)
* Concurrent private placement: Up to 7.77 million shares ($4.66 million)
* Over-allotment option: Consortium banks may purchase up to an additional 15% of shares
* Potential total: Over $24.6 million, excluding the over-allotment option

Strategic Allocation for Growth

Management has designated the injected capital for specific strategic objectives. A central pillar of this strategy is the establishment of the Mirabel Manufacturing Hub, a facility designed to significantly scale production capabilities.

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A substantial portion of the funds is also earmarked for research and development, with a focus on advancing drone technologies tailored for defense applications. The company is positioning itself to capitalize on the growing global demand for intelligence, surveillance, and reconnaissance solutions amid rising geopolitical tensions. Remaining capital will support potential acquisitions in the defense sector and provide general working capital.

Shareholder Dilution and Future Prospects

The creation of more than 40 million new shares represents a significant dilution event for current shareholders. The offering price of $0.60 per share now serves as a critical benchmark for the company's valuation.

The central question for investors is whether the potential for long-term value creation—driven by the Mirabel expansion and anticipated defense contracts—outweighs the short-term impact of share dilution. A successful capital raise provides the necessary liquidity to fully execute the company's manufacturing and defense strategy.

Final Steps and Forward Outlook

The transaction's completion remains subject to standard closing conditions, including final approval from the TSX Venture Exchange. With the prospectus now filed, market attention turns to November 26, 2025, as the next key milestone for the deal.

This financing round is poised to equip Volatus Aerospace with the resources needed to aggressively pursue its operational targets in 2026. The subsequent challenge will be deploying this capital efficiently to generate returns from the enhanced manufacturing and defense capacities.