# 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. Published 2026-10-14 by TGOs. Canonical: https://tgos.io/news/2026/10/14/canadian-drone-maker-draganfly-forms-u-s-defense-subsidiary/ 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] 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."[1] Modly, a Draganfly director since 2024, will give up his seat on the parent board "in accordance with regulatory requirements" to take the chair.[1] 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."[1] 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] ## Why it matters 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 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) 2. Draganfly Inc., Form 6-K cover, accession 0001493152-26-046698 3. Draganfly Inc., Form 6-K Exhibit 99.1: Draganfly Makes Strategic Investment in Ukraine Defence Technology Company DoD Solution (Oct. 13, 2026) 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)