DRONE AVIATION HOLDI (OTCMKTS:DRNE) has had an impressive run in the recent trading sessions at the back of a string of positive news. The impressive run follows one of the company’s largest investor Dr. Philip Frost expressing his confidence on the appointment of a new chairman Jay H. Nussbaum. However, the company faces mounting pressure on the level of dilution of its common stock.

Stock Dilution Concerns

DRONE AVIATION HOLDI (OTCMKTS:DRNE) preferred a shares have ballooned to 37 million over the past one year from lows of 4 million, as of April 2014. Conversion of 86,300 preferred a shares to 8,630,000 common shares between January 1 and March 26 this year just highlights the dilution debacle that the company finds itself in.

 The company might be financially stable compared to other penny stock companies, but the level of dilution is a niggling concern to many investors. At the current levels, Drone Aviation only has 300 thousand worth of preferred A shares.

Aggressively pursuing the growing drone market is DRONE AVIATION HOLDI (OTCMKTS:DRNE) biggest play as it looks to maintain a close relationship with the US Department of Defense. The company already provides aerial, land-based surveillance and communications services to both the government and commercial customers.

Management Shakeup

Billionaire investor Frost affirmed investors’ confidence on the company’s long-term prospects on investing $1,500,000 in securities last year. Nussbaum joins DRONE AVIATION HOLDI (OTCMKTS:DRNE) having already completed a $1 million Series G Preferred Stock financing and will work closely with Dr. Frost on the Strategic advisory board.

Nussbaum should be a great addition to Drone Aviation as he is expected to spearhead efforts in meeting growing demand for the company’s products from the government, military, and commercial sector. Nussbaum joins DRONE AVIATION HOLDI (OTCMKTS:DRNE) with vast experience in commercial sales and matters about government processes.