The little-known drone company’s stock soared Wednesday after it announced that Donald Trump Jr. has joined the company’s advisory board.
Orlando, Florida-based Unusual Machines, which was formed just two years ago after acquiring a drone manufacturer and another drone sales company, announced the appointment in an early morning press release.
“The addition of Don Jr. to our advisory board provides us with the unique expertise we need to bring drone component manufacturing back to America,” said Alan Evans, CEO of Unusual Machines, in a release. mentioned in. “He brings a wealth of experience and I look forward to his advice and role within the company as we continue to build our business.”
Trump Jr. also said in a statement that he placed the move in the context of his father, President-elect Donald Trump’s America First economic policies.
“The need for drones is clear. It’s also clear that we have to stop buying Chinese-made drones and Chinese-made drone parts,” Trump Jr. said. “I love Unusual Machines’ work in bringing drone manufacturing jobs back to the United States, and I’m excited to play a larger role in this movement.”
After announcing Trump Jr.’s move, Unusual Machines’ stock nearly doubled to more than $10 on heavy trading volume, then regained some of its gains. The closing price on Wednesday afternoon was $9.89 per share. In May, the stock price fell to 98 cents.
Trump Jr. is listed as owning 331,580 shares of Unusual Machines, according to a stock offering detailed in a securities filing Wednesday. Of these, 131,580 shares were held due to participation in a private placement of shares at a purchase price of $1.52 per unit.
Trump Jr. owns the remaining 200,000 shares as a result of a restricted stock unit agreement and advisory agreement, according to the filing. Half of these shares can be sold immediately upon approval of the agreement by the Board of Directors, with the remaining shares vesting on May 22, 2025. “The selling stockholder may not sell all, part, or any of the shares offered pursuant to this agreement,” the filing states. An offering. ”
Chief Financial Officer Brian Hoff declined to comment when asked what Trump Jr.’s advisory agreement would require of him.
Wednesday’s jump in stock prices shows how much association with Mr. Trump’s name can change a company’s fortunes, for better or worse. During Donald Trump’s first term as president, his social media posts mentioning a company or one of its executives could cause stock prices to fall or spike, posing significant risks or rewards to investors. did.
Unusual Machines already had some momentum earlier this month and posted a significant rally after Election Day. Still, despite the stock’s rise, its market value remained at a relatively paltry $69 million as of early Wednesday afternoon.
Unusual Machines could also come under fire if President-elect Trump launches a new trade war with China. The company noted in its filing that it relies heavily on imports from China, and that President Trump said it would face punitive tariffs after taking office. “If additional tariffs are imposed, our business and results of operations could be materially and adversely affected,” the company said in a regulatory filing, warning of potential price increases.
A spokesperson for Unusual Machines did not respond to a request for comment.
Unusual Machines closed its initial public offering of 1.25 million shares in February with net proceeds of $3.85 million, according to CNBC.
When the company completed its IPO, it also acquired drone brands Fat Shark and Rotor Riot from Red Cat. Jeffrey Thompson, founder and CEO of Red Cat, is the founder, former CEO, and current director of Unusual Machines.
In a recent regulatory filing, Unusual Machines said it changed accounting firms in April and “terminated its contract with its previous auditor.” The company in question is BF Borgers CPA, which also served as Trump Media’s auditor. Truth Social is the parent company and majority owner is the president-elect.
In May, the SEC charged BF Borgers with “massive fraud” for operations that affected more than 1,500 SEC filings. Auditor and owner Benjamin Borgers agreed to be permanently suspended from practicing as an accountant by the SEC and to pay a total fine of $14 million.
Shortly thereafter, Trump Media hired a new auditor to replace BF Borger.
Unusual Machines said in its recent quarterly report that its new accounting firm re-audited the company’s previous financial statements and found that various transactions and stock-based compensation expense were not recorded. Ta.
