Security and technology company DroneShield has raised $10.9 million through a placement with the help of more than ten institutional investors from Australia and overseas.
The ASX-listed company said in a press release that net proceeds would scale its engineering, manufacturing and sales teams.
Additionally, the company said it would invest in the said areas and boost its inventory to quickly complete larger contracts.
DroneShield said it is also offering eligible shareholders the chance to take part in a share purchase plan to raise up to $3 million in recognition to the company’s retail shareholders.
The new shares to be issued under the SPP will be issued at $0.30 per share, the same price as the placement.
Under the share purchase plan, current shareholders may purchase up to $30,000 worth of shares, with DroneShield’s chairman Peter James and CEO Oleg Vornik each purchasing the full $30,000.
“This capital raise enables DroneShield to take full advantage of opportunities for rapid growth, following our two record $11 million sales announced in December 2022 and January 2023, as the market demand for counterdrone equipment is rapidly heating up around the world,” said CEO Oleg Vornik.
“This is underpinned by rising defence and security budgets and an increasing role of drone technology in armed conflicts, terrorism and other nefarious applications. DroneShield welcomes the new domestic and international institutional investors to the company,” the CEO continued.
For this placement, Peloton Capital and Bell Potter Securities acted as joint lead managers.
Settlement of the shares under the placement is anticipated to take place on Thursday, 9 February 2023, with allotment to occur on Friday, 10 February 2023
