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Budget · Drones

Canadian drone maker Draganfly forms U.S. defense subsidiary chaired by former acting Navy secretary

Thomas Modly will leave the parent board to chair Draganfly Defense USA, a unit intended to support the security and compliance requirements of serving U.S. defense customers.

Draganfly, a Canadian-headquartered drone maker, announced Monday, Oct. 12, that it has formed Draganfly Defense USA, Inc. as a focused operating structure for its U.S. defense activities.1–2 The company says the structure is designed to support demand for its products and services in defense programs with "stringent domestic, security and compliance requirements."1 Thomas B. Modly, the Navy's 33rd under secretary and a former acting secretary, will chair the subsidiary's board, with Draganfly CEO and Chairman Cameron Chell as a director.1

Modly will relinquish his Draganfly Inc. board seat, in accordance with regulatory requirements

The subsidiary is intended as the operating structure for Draganfly's U.S. defense activities

Thomas B. ModlyChairman of the Board of Draganfly Defense USAplanned

the 33rd Under Secretary and former Acting Secretary of the U.S. Navy

Cameron Chella director of the new subsidiaryplanned

CEO and Chairman of Draganfly Inc.

Source: Draganfly Inc., Form 6-K Exhibit 99.1 (release dated Oct. 12, 2026)

Sources
TGOs tgos.io

The unit is meant to provide a framework for defense-specific governance, cybersecurity and export-control procedures, including "the segregation and protection of controlled technologies and sensitive information where required." Modly, a Draganfly director since 2024, will give up his seat on the parent board "in accordance with regulatory requirements" to take the chair. Draganfly didn't say which requirements apply, or what ownership, capital or contracts the unit will hold.1

Retired Marine Brig. Gen. AJ Pasagian, named the unit's president in August, will lead U.S. defense operations.1, 4 Draganfly says he was acquisition decision authority for more than 450 Marine Corps ground and information technology programs as head of Marine Corps Systems Command from 2018 to 2022.4

The remit runs from counter-UAS technologies and domestic supply chains to "execution of current and future U.S. defense programs." Draganfly also cites its selection, with F4 Defense International, by DEVCOM Army Research Laboratory for a counter-UAS development contract.1 On Oct. 13 it announced a strategic investment in DoD Solution, an Estonian-Ukrainian autonomy developer that plans to use the financing partly to meet U.S. National Defense Authorization Act compliance requirements.3

The first award naming Draganfly Defense USA, rather than Draganfly Inc., as the contractor would show whether the unit becomes the company's contracting entity for U.S. defense work.1

Sources (4)
  1. Draganfly Inc., Form 6-K Exhibit 99.1: Draganfly Establishes Dedicated U.S. Defense Subsidiary, Appoints Former Under Secretary & Acting Secretary of the Navy Thomas Modly as Chairman (release dated Oct. 12, 2026; furnished Oct. 13, 2026) www.sec.gov
  2. Draganfly Inc., Form 6-K cover, accession 0001493152-26-046698 www.sec.gov
  3. Draganfly Inc., Form 6-K Exhibit 99.1: Draganfly Makes Strategic Investment in Ukraine Defence Technology Company DoD Solution (Oct. 13, 2026) www.sec.gov
  4. Draganfly Inc., Form 6-K Exhibit 99.1: Draganfly Appoints Brigadier General AJ Pasagian USMC (Ret'd) as President of Draganfly Defense USA Operations (Aug. 25, 2026) www.sec.gov
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Budget · Uncrewed systems

Canada proposes C$2.3 billion for its Defence Drone Initiative

A portion of the proposed funding would come from money already provisioned in Canada's fiscal framework, the budget says.

Canada's budget, released Nov. 5, proposes C$2.3 billion on a cash basis for the Department of National Defence's Defence Drone Initiative.1–2 The proposal covers five years starting in 2027-28.2

Budget 2026 proposes $2.3 billion

for the Defence Drone Initiative

Department of National Defence$2.3 billionrequested

over five years, starting in 2027-28, on a cash basis

fiscal frameworkA portion of fundingplanned

would be sourced from funding already provisioned in the fiscal framework

Source: Government of Canada, Budget 2026, Chapter 5. As of November 5, 2026.

Sources
TGOs tgos.io

A portion of the funding would come from money already provisioned in Canada's fiscal framework. The proposed funding would support an existing procurement effort: the budget reports that the initiative's first contract was awarded in 50 days.2

The initiative was announced July 23, 2026, and is co-led by the Defence Investment Agency. It is intended to supply uncrewed and counter-uncrewed capabilities to the Canadian Armed Forces and Canadian Coast Guard. The budget says it provides access to nearly 400 trusted Canadian suppliers and supports cooperation with allies and partners such as Ukraine.2

The funding is intended to accelerate the discovery, acquisition and deployment of uncrewed and counter-uncrewed capabilities. The initiative's marketplace is meant to provide a pathway for Canadian technologies from concept to operational testing and, where they meet defence requirements, into production.2

Sources (2)
  1. Government of Canada releases Budget 2026: Masters of our destiny, Department of Finance Canada, Nov. 5, 2026 www.canada.ca
  2. Budget 2026, Chapter 5: A safe and sovereign Canada budget.canada.ca

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Budget · Allied financing

EU releases €658 million for Ukraine’s defense procurement

The European Commission says most of the payment will buy equipment from Ukrainian companies.

The European Commission disbursed €658 million to Ukraine for defense procurement under the Ukraine Support Loan.1–2 Most of the payment will purchase equipment from Ukrainian companies, the Commission said.1

The majority of the defence funding will be used to procure equipment from Ukrainian companies

Ukraine Support Loan

disbursed€658 millionactual

€658 million under the defence leg of the Loan.

procurementdrones, missiles, radarsplanned

The defence funding will support procurement of drones, missiles, radars, electronic warfare systems and air defence ammunition.

European Commission

Sources
TGOs tgos.io

The funding is intended for drones, missiles, radars, electronic warfare systems and air defense ammunition.1

Earlier defense payments included €3.9 billion on June 30. That payment went toward a tranche of around €6 billion dedicated to drone procurement.3 A further €3.3 billion payment on Sept. 18 covered drones and missiles.4

The latest defense disbursement accompanied €3.7 billion in budget support, Ukraine’s second macro-financial assistance installment for 2026.2 Ukraine met all 12 policy conditions required for that budget payment.1

The payment brings disbursements under the loan’s defense leg to €16.4 billion. Another €11.9 billion is available under the loan for the rest of 2026 to support Ukraine’s defense industrial capacity, with release subject to the required conditions.1

Sources (4)
  1. European Commission: Commission disburses €4.36 billion to Ukraine under the €90 billion Ukraine Support Loan ec.europa.eu
  2. European Commission (DG ECFIN): Commission disburses €4.36 billion to Ukraine under the €90 billion Ukraine Support Loan ec.europa.eu
  3. European Commission: Ukraine Support Loan defence-industry-space.ec.europa.eu
  4. European Commission: Commission disburses €3.3 billion in defence funding to Ukraine (Sept. 18, 2026) defence-industry-space.ec.europa.eu