Unusual Machines' Stock Skyrockets Post Trump Jr.'s Advisory Board Joining

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ICARO Media Group
Politics
27/11/2024 17h57

**Drone Company's Stock Soars After Trump Jr. Joins Advisory Board**

In a surprising market reaction, shares of Unusual Machines experienced a substantial boost on Wednesday following the announcement that Donald Trump Jr. had joined the company's advisory board. This Orlando-based drone firm, which came into existence just two years ago through acquisitions of a drone manufacturer and a drone retailing firm, revealed Trump Jr.'s appointment in an early-morning press release.

CEO Allan Evans expressed enthusiasm about the addition of Trump Jr., highlighting the strategic benefits of the move. "Don Jr. joining our board of advisors provides us unique expertise we need as we bring drone component manufacturing back to America," Evans said. "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 issued a statement emphasizing the alignment of this role with his father's America First economic policies. "The need for drones is obvious. It is also obvious that we must stop buying Chinese drones and Chinese drone parts," Trump Jr. remarked. "I 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."

The market reacted quickly, with Unusual Machines' stock nearly doubling to more than $10 on heavy trading volume before retreating slightly. This surge underscores the influential power of the Trump name on market perceptions. During Donald Trump's presidency, his social media endorsements could significantly impact company stocks, leading to either lucrative gains or material risks for investors.

Unusual Machines has been on investors' radar with significant gains post-Election Day. Despite recent stock increases, the company maintains a modest market value of $69 million as of early Wednesday afternoon. However, the firm's future may be affected by President-elect Trump's potential trade policies, specifically regarding tariffs on Chinese imports, on which Unusual Machines heavily relies.

Earlier this year, Unusual Machines completed its initial public offering in February, selling 1.25 million shares for net proceeds of $3.85 million. This capital infusion supported the company's acquisition of drone brands Fat Shark and Rotor Riot from Red Cat. Notably, Red Cat's founder and CEO Jeffrey Thompson is the founder and former CEO, currently serving as a board member of Unusual Machines.

In regulatory filings, Unusual Machines disclosed a significant shift in its accounting practices, having terminated its engagement with BF Borgers CPA in April. This firm was also Trump's Media and Truth Social parent company auditor until it faced charges of "massive fraud" by the SEC. Benjamin Borgers, the owner, agreed to a permanent suspension and a penalty of $14 million. Unusual Machines subsequently transitioned to a new accounting firm, which re-audited its financial statements and uncovered previously unreported transactions and stock compensation expenses.

Unusual Machines did not immediately respond to requests for further comments on these developments.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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