Australian drone manufacturer Orbital UAV has secured a $1.5 million grant from the Department of Jobs, Tourism, Science & Innovation, after the company reached an agreed performance milestone during the second half of 2023.
The grant reduces Orbital UAV’s legacy loan balance with the WA government and improves the company’s net asset position, the company said in an ASX announcement today.
Todd Adler, chief executive officer and managing director of Orbital UAV, said the company is a vital component of a developing WA military sector that supports sovereign capacity.
He added, “We are grateful to the WA government for its continued support as we strengthen our position as a global leader in the design and manufacture of propulsion systems for military UAVs.”
The company’s interest-free loan with the WA government was made in January 2010, with a term through 30 May 2025, and represents Orbital’s only current borrowings.
In a Deed of Variation inked January 2023, the WA Department of Jobs, Tourism, Science & Innovation agreed to amend the repayment schedule, allowing Orbital to offset its debt to the state by reaching various performance milestones.
The revised repayment schedule offers the company a possible route to repay the entire balance of the outstanding loan by December 2024.
“Performance Milestones agreed under the Deed of Variation include the delivery of new business, increased capability and the recruitment and upskilling of defence industry personnel – all of which make a contribution to enhancing WA’s defence industry capability,” said Adler.
He added, “Delivery of the performance milestones also provides a significant opportunity to further strengthen the Company’s balance sheet and position Orbital UAV for future growth.” he said.
