Draganfly Established U.S. Defense Subsidiary
The company formed a new entity to better manage defense-specific regulatory requirements and national security operations.
Updated on Oct. 12, 2026 in Military
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Draganfly Inc. has launched a dedicated U.S. defense subsidiary, Draganfly Defense USA, Inc. The new entity aims to support growing demand within U.S. defense programs and enhance compliance with security regulations.
Why it matters
The formation of the subsidiary creates a dedicated framework for managing cybersecurity, data protection, and export controls required for serving U.S. defense customers. It also allows for the segregation of controlled technologies from the company's broader commercial operations.
The new subsidiary will operate under a specialized governance structure to manage export-control procedures and sensitive data. Draganfly maintains 27 years of experience in the development of unmanned systems.
The players
Thomas B. Modly
He is the 33rd Under Secretary and former Acting Secretary of the U.S. Navy and now serves as the Chairman of the Board of Draganfly Defense USA, Inc.
AJ Pasagian
A retired Brigadier General, he was appointed to serve as the President of Draganfly Defense USA in August 2026.
Cameron Chell
He serves as a director of the newly established Draganfly Defense USA, Inc.
Draganfly Inc.
The parent organization is an experienced developer of unmanned systems with a 27-year history in the industry.
The details
The subsidiary provides a dedicated framework for defense-specific governance and the protection of sensitive information. Draganfly expects this move to accelerate the expansion of its U.S.-based manufacturing and supply-chain capabilities.
Timeline
Thomas B. Modly joined the Draganfly Board of Directors in 2024.
Brigadier General AJ Pasagian was appointed President of the subsidiary in August 2026.
The establishment of Draganfly Defense USA, Inc. was formally announced on October 12, 2026.
Political Context
Defense contractors often establish independent U.S. subsidiaries to ensure full compliance with the International Traffic in Arms Regulations. This structural separation is frequently criticized by advocacy groups as a move that complicates oversight of foreign-owned technology suppliers.
The creation of a U.S.-based subsidiary aims to streamline how the company pursues federal defense contracts and local manufacturing jobs. Taxpayers and citizens may see increased domestic production of defense-related unmanned systems as the company scales its operations.
The takeaway
This move signals a strategic shift toward domestic defense manufacturing to meet strict U.S. security mandates. Investors and industry observers should watch for future contract awards that validate the subsidiary's operational capacity.
Further reading
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