Draganfly (DPRO) said Monday it has agreed to acquire all of the assets of Skip Dynamix's drone technology business for up to about $7.5 million in cash and shares.

The transaction includes a cash payment of about $2.5 million at closing, the company said.

Another $2.5 million in Draganfly shares under a special warrant will be issued at closing to the satisfaction of a payment vesting condition requiring Skip Dynamix's founders to be actively engaged until at least the first anniversary after closing, the company said.

The transaction also provides for another $2.5 million payable in a combination of cash and Draganfly shares subject to the business achieving certain milestones, the company said.

The deal is expected to close in early June, Draganfly said.