Draganfly Inc. has taken a significant step towards expanding its footprint in the U.S. defense sector by establishing a new subsidiary, Draganfly Defense USA. This move is designed to enhance the company’s capabilities in meeting the increasing demand for unmanned systems in defense applications. The appointment of former Under Secretary and Acting Secretary of the Navy, Thomas Modly, as chairman of this new entity underscores the company’s commitment to strengthening its position in the national security market.
Founded in 1998, Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a Canadian-headquartered developer of advanced drone solutions and unmanned systems. The company operates under the Standard Industrial Classification (SIC) code 3721, which covers the aircraft manufacturing sector. Draganfly has a long history of delivering innovative technologies across various applications, including defense, public safety, and agriculture. The recent establishment of Draganfly Defense USA marks a pivotal moment for the company as it seeks to broaden its market reach in the United States.
According to the recent SEC filing dated October 13, 2026, Draganfly Defense USA is intended to support the company’s ongoing expansion into the U.S. defense and national security markets. The subsidiary will focus on meeting the security, regulatory, and compliance requirements associated with serving U.S. defense customers. Modly's leadership will guide the new entity as it develops governance structures, cybersecurity protocols, and operational procedures tailored to the unique demands of the defense sector.
In his new role, Modly will relinquish his position on Draganfly's board to concentrate on the growth and governance of Draganfly Defense USA. His extensive experience in defense leadership and government will be instrumental in navigating the complexities of the U.S. defense landscape. Modly has been a member of Draganfly’s Board of Directors since 2024, providing strategic guidance as the company has expanded its presence in the defense market.
Brigadier General AJ Pasagian, USMC (Ret’d), who was appointed President of Draganfly Defense USA in August 2026, will lead the subsidiary’s operations. He will be responsible for strategic growth, government and industry relationships, and operational execution across defense programs. This leadership team aims to build a robust platform that meets the evolving requirements of U.S. defense operations.
Draganfly Defense USA will focus on various areas, including unmanned aerial systems, autonomous technologies, counter-UAS technologies, and secure communications. The subsidiary aims to leverage Draganfly’s existing engineering and manufacturing capabilities to support U.S. defense initiatives while building domestic supply-chain development.
“Establishing Draganfly Defense USA creates a dedicated structure to serve the unique requirements of the U.S. defense market,” Modly stated. He emphasized the need for operational discipline and advanced capabilities to support U.S. defense customers effectively. The establishment of this subsidiary reflects Draganfly's commitment to meeting the stringent demands of the defense sector.
Draganfly has been actively expanding its presence in the U.S. defense ecosystem throughout 2026. This includes the recent acquisition of Skip Dynamix and a development contract with the DEVCOM Army Research Laboratory for a modular, multi-layered integrated counter-UAS system. These initiatives highlight Draganfly's strategic focus on enhancing its capabilities and offerings in the defense sector.
As the demand for secure, mission-critical unmanned systems continues to grow, Draganfly Defense USA is well-positioned to capitalize on emerging opportunities within the U.S. defense market. The company’s commitment to innovation and operational excellence will be crucial in navigating the competitive landscape of the aircraft manufacturing industry.
The filing does not specify what happens next, but the establishment of Draganfly Defense USA is expected to lead to further developments in the company’s defense initiatives.