Shares in a little-known drone company soared Wednesday after it announced that Donald Trump Jr. had joined its advisory board.<\/p>\n
Unusual Machines, an Orlando, Florida-based firm born just two years ago as it acquired a drone manufacturer and a separate drone retailing firm, announced the appointment in an early-morning news release.<\/p>\n
\u201cDon Jr. joining our board of advisors provides us unique expertise we need as we bring drone component manufacturing back to America,\u201d CEO Allan Evans said in the release. \u201cHe brings a wealth of experience and I look forward to his advice and role within the Company as we continue to build our business.\u201d<\/p>\n
Trump Jr., in the statement, also put the move in the context of the America First economic agenda of his father, President-elect Donald Trump.<\/p>\n
\u201cThe need for drones is obvious. It is also obvious that we must stop buying Chinese drones and Chinese drone parts,\u201d Trump Jr. said. \u201cI love what Unusual Machines is doing to bring drone manufacturing jobs back to the USA and am excited to take on a bigger role in the movement.\u201d<\/p>\n
After Unusual Machines announced Trump Jr.\u2019s move, its stock nearly doubled to more than $10 on heavy trading volume before it gave back some of the gains. It closed at $9.89 a share Wednesday afternoon. In May, the stock fell to as low as 98 cents.<\/p>\n
According to a share offering detailed in a securities filing Wednesday, Trump Jr. is listed as having owned 331,580 shares of Unusual Machines. Of those, 131,580 shares were held because of his participation in a private placement offering of shares at a purchase price of $1.52 per unit.<\/p>\n
Trump Jr. holds the remaining 200,000 shares as the result of a restricted stock unit agreement and advisory agreement, the filing says. Half of those shares can be immediately sold when the company\u2019s board approves the agreements, and the rest will vest on May 22. The filing says \u201cthe Selling Stockholders may sell all, some or none of the offered Shares in this offering.\u201d<\/p>\n
Brian Hoff, the chief financial officer, declined to comment when asked what Trump Jr.\u2019s advisory agreement will require of him.<\/p>\n
Wednesday\u2019s stock surge demonstrates the extent to which an association with the Trump name can transform an entity\u2019s fortunes, for better or worse. During Donald Trump\u2019s first term as president, his social media posts mentioning a company or one of its executives could cause shares to slide or jump, creating material risks or gains for investors. <\/p>\n
Unusual Machines already had some momentum this month, having posted large gains after Election Day. Still, even with the share increases, its market value stood at a relatively meager $69 million as of early Wednesday afternoon.<\/p>\n
Unusual Machines also finds itself potentially in the crossfire if President-elect Trump launches a new trade war with China. The company notes in the securities filing its heavy reliance on Chinese imports, which Trump now says would face punitive tariffs once he takes office. \u201cIf there are increased tariffs imposed, it could materially and adversely affect our business and results of operations,\u201d the company said in a regulatory filing, warning of potential price increases.<\/p>\n
An Unusual Machines spokesperson didn\u2019t immediately respond to a request for comment. <\/p>\n
In February, Unusual Machines closed its initial public offering of 1.25 million shares of stock for net proceeds of $3.85 million, according to CNBC. <\/p>\n
When the company completed its IPO, it also acquired the drone brands Fat Shark and Rotor Riot from Red Cat. Jeffrey Thompson, the founder and CEO of Red Cat, is the founder and previous CEO and current board member of Unusual Machines.<\/p>\n
In a recent regulatory note, Unusual Machines said it changed its accounting firm in April and \u201cterminated its engagement with their prior auditor.\u201d The firm in question was\u00a0BF Borgers CPA, which also had been the auditor for\u00a0Trump Media,\u00a0the Truth Social parent company whose majority owner is the president-elect.<\/p>\n
The Securities and Exchange Commission charged BF Borgers in May with \u201cmassive fraud\u201d for work that affected more than 1,500 SEC filings. The auditor and owner Benjamin Borgers agreed to be permanently suspended from practicing as accountants before the SEC and to pay a combined $14 million in penalties.<\/p>\n
Trump Media soon after retained a new auditor to replace BF Borgers.<\/p>\n
Unusual Machines in its recent quarterly report said that its own new accounting firm re-audited the company\u2019s prior financial statements and found that various transactions and stock compensation expenses weren\u2019t recorded. <\/p>\n
<\/p>\n
Shares in a little-known drone company soared Wednesday after it announced that Donald Trump Jr. had joined its advisory board. Unusual Machines, an Orlando, Florida-based firm born just two years ago as it acquired a drone manufacturer and a separate drone retailing firm, announced the appointment in an early-morning news release. \u201cDon Jr. joining our […]<\/p>\n","protected":false},"author":0,"featured_media":12747,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-12746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=12746"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12746\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/12747"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=12746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=12746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=12746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}