Uncrewed aerial vehicle manufacturer Orbital UAV has received a $3 million grant from the Western Australian government after the company reached an agreed performance milestone during the second half of 2022.
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 performance milestones have solidified the company’s position to pursue its growth path, enhance and expand its product, services and technical capabilities, and support the identification and development of skilled workers that seek to enter the defence industry.
“We are grateful to the WA government for its ongoing support as we continue to strengthen Orbital UAV’s position as a global leader in the design and manufacture of propulsion systems for military UAVs,” Adler said.
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 signed 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 new repayment schedule provides a potential pathway for the company to offset the entire value of the remaining loan by December 2024.
“Delivery of the performance milestones provides a significant opportunity to further strengthen the Company’s balance sheet and position Orbital UAV for future growth,” Adler added.
