ZenaTech shares surge on drone progress, risks remain News ad

WomenTechnology NASDAQ: XENA is a new public stock that has recently delighted investors. Following the company’s initial public offering (IPO) on October 1, shares fell, losing 80% of their value through November 22. Then, within two trading days, the stock jumped 475%. This brought the stock back above where it started.

Since then, the shares have fallen significantly and are below their original offering price.with a total return of -26% as of the end of December 4th.. The company’s wild roller coaster ride creates suspense. I’ll go into detail about what this company does, the event that caused its stock to skyrocket, and give my opinion on the future of this tech company’s stock.

ZenaTech business and transition to unmanned vehicle systems

ZenaTech’s registration filing clearly differentiates its current business from its expected business. The company currently offers many software products. These software offerings serve many different markets and use cases. The company also divides its software businesses into those that are currently generating revenue and those that are not. Those that generate revenue serve healthcare, industrial, surveillance and call centers. A company’s non-revenue-generating software is related to its intended business. We are talking about unmanned transport systems or drones. The company has no plans to discontinue or make changes to its software business while remaining involved in its drone business.

The company wants to expand its business in this space, which is the main reason for the interest in this stock. The drone business is currently focused on three key markets: agriculture, inventory management and defense. Its non-revenue-generating software is being created to help farmers fly ZenaTech drones. The company’s goal is to track plant data, optimize farming practices, and improve crop yields. Five pilot customers from the agricultural industry are currently evaluating the company’s ZenaDrone 1000.

He also wants the US government to use its drone technology to help national defense. In December 2023, the company signed contracts with the US Air Force and US Naval Research to demonstrate the capabilities of the ZenaDrone 1000. The drone’s function is to transport cargo. The company emphasizes that it is “five times larger than many commercial drones and is made from carbon fiber to keep it lightweight.” This supposedly gives it the ability to transport significant volumes of cargo in military zones. The company is also developing a small drone for cargo transportation. help manage inventory in warehouses. The US Patent Office has granted the company two utility model patents and two design patents for unmanned aerial vehicles.

What made ZenaTech shares soar?

ZenaTech shares soared on November 25 and 26 due to the company’s announcement of its drone technology. The company announced that it has signed agreements with key supply chain partners. They will ensure ZenaTech drones are compliant for sale to US defense and North Atlantic Treaty Organization (NATO) forces.

The company has confirmed that its drones do not contain parts made by some Chinese companies. This now allows ZenaDrone 1000 to qualify for inclusion on the Blue Unmanned Aerial Systems (UAS) list, which will allow the company to do business with the US Department of Defense (DoD).

This announcement is a big step, but the company still has many hurdles to overcome. First, he will work toward obtaining Green UAS certification, which is less rigorous and easier than obtaining Blue UAS certification. If successful, he will move on to actually obtain Blue UAS certification. ZenaTech will then be able to begin doing business with the US Department of Defense. Investors should not misinterpret this announcement. This doesn’t mean ZenaTech is close to doing business with the US government.

ZenaTech: Exciting technology, but now it’s a speculative investment

Overall, ZenaTech is an interesting company to watch. Biotech stocks should trade similarly to biotech stocks. Government approval or denial during UAV certification will greatly affect the price. The company received $7 million in proceeds from the IPO. That should give the company a few years of runway, given that it lost nearly $1 million in cash from its operations in the first six months of 2024.

It is important to note that the company has significant amounts of convertible debt and warrants. They may lead to shareholder dilution in the future. At this point, I consider ZenaTech to be a highly speculative venture. My interest will increase if I see more progress in UAV certification.

Before you think about ZenaTech, you need to hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and ZenaTech wasn’t on the list.

While ZenaTech currently has an analyst rating of Hold, the top-ranked analysts think these five stocks are Strong Buys.

View five stocks here

Want to know which next stock will be a big hit and have strong fundamentals? Click the link below to learn more about how your portfolio can blossom.

Get this free report

Did you like this article? Share this with a colleague.

The link has been copied to the clipboard.