Draganfly Sells Its Own Headquarters to Itself for $10M, Then Leases It Back at a Loss
Canadian drone maker Draganfly has completed a $10 million investment by selling its own office building to a subsidiary, then renting it back for more than it earns, in what analysts call the most committed act of corporate self-belief since the last one.
Draganfly has secured a $10 million investment by selling its own headquarters to a wholly owned subsidiary, then immediately leasing the building back from that subsidiary at a monthly rate that exceeds the company's entire revenue, according to a filing the company describes as «a bold statement of confidence in our own real estate.»
The subsidiary, Draganfly Unusual Holdings, paid for the building using the $10 million it received from Draganfly, which Draganfly then booked as an investment from Unusual Machines. «We are pleased to welcome ourselves as a strategic partner,» said a company spokesperson. «This deal proves we believe in us so much that we bought us twice.»
Under the terms, Draganfly will pay its subsidiary $1.2 million per month in rent, a figure the company says is «competitive» because the subsidiary has agreed to spend the money on more Draganfly shares. The subsidiary has also hired Draganfly to manage the building, and Draganfly has hired the subsidiary to manage Draganfly, creating a management loop that one analyst called «the most efficient way to pay yourself a salary you already own.»
By Thursday, the subsidiary had announced its own $10 million investment in Draganfly, funded by Draganfly's rent payments. The company's stock rose 4 percent on the news that it had successfully invested in itself for the third time this week.
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