DroneShield shares leap on US government contract
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The news: DroneShield shares gained at market open on the ASX after the defence technology company announced it had been awarded a repeat $5.7 million contract from a US government customer.
Shares were up 6.2% to $0.95 by 10:30am AEST.
DroneShield awarded repeat $5.7m US government contract
The news: Defence tech small cap DroneShield has been awarded a repeat $5.7 million contract from a US government customer for a number of its counter-drone systems.
The numbers: Shares in the Sydney-based company have gained 140% since the turn of the year, reaching a share price of 89 cents and a market cap of around $640 million.
The context: The US government customer has invested in DroneShield's Counter-UxS systems, which are anti-drone products that target multi-domain aerial, ground and maritime surface drones.
DroneShield said the delivery of the systems, which involve multiple product lines, is expected to be completed in several stages throughout the remainder of the year.
Last month, DroneShield saw strong demand from institutional investors for its $75 million equity raise, aimed at building up inventory, fulfilling its order pipeline and accelerating the development of its in-house AI and machine learning capabilities.
What they said: DroneShield's US CEO Matt McCrann said: "As the drone threat continues to evolve and proliferate across domains in modern conflicts, we are honoured to support the US Government and our allies as they look to meet the growing need for advanced Counter-UxS solutions".
The source: ASX announcement
