DroneShield shares plunge after discounted capital raising
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More news: Shares in DroneShield slid more than 14% to $1.19 after the counter-drone technology company agreed to issue 104.3 million shares at a discounted price of $1.15 per share to raise $120 million.
DroneShield shares closed at $1.39 ahead of a trading halt for the equity raising. It marks the second time in three months that DroneShield has raised funds, after last completing a $100 million capital raise in April.
DroneShield closes $120m cap raise
The news: DroneShield has completed its fully underwritten placement of $120 million worth of shares, citing strong support from "domestic and international institutions".
The numbers: The counter-drone technology company will issue 104.3 million shares at $1.15 per share. Following the placement, the company's fully diluted equity value will be $1.06 billion, with a fully diluted enterprise value of $941.5 million.
Of the $120 million raised, $90 million is designated for tech research and development, $20 million to fund potential acquistions and the remaining $10 million for working capital and to cover offer costs.
The context: It marks the second time in three months that DroneShield has raised funds, completing a $100 million capital raise as recently as April. Management pitched this placement as an opportunity to get DroneShield set for future growth as the threat of drones and the need for defence technology rises.
What they said: "This placement is enabling us to undertake a number of rapid R&D programs in response to end user requirements, over the next 12 to 24 months due to anticipated increase in AI SaaS offerings and higher sales pricing for the underlying hardware, as the [counterdrone] market continues to rapidly grow, supported by the current tailwinds through drones being used extensively for nefarious purposes globally," CEO Oleg Vornik said in a statement.
The source: ASX Announcement
