DroneShield launches $75m capital raise on soaring shares
Make us a preferred source
Make us a preferred source on Google
The news: ASX-listed defence stock DroneShield is raising $75 million at the issue price of 80 cents a share, a 28% discount to its close on Wednesday.
The numbers: The drone defence company is looking for $70 million via a fully underwritten placement offered to institutional, professional and sophisticated investors and a further $5 million to existing shareholders.
The context: In a statement to the ASX, DroneShield said it would use the raise to build up inventory, fulfil its order pipeline and accelerate the development of its in-house AI and machine learning capabilities.
DroneShield shares soared 19% to $1.12 on Wednesday after the company announced its partner had signed a NATO Framework Agreement. DroneShield now looks to be capitalising on its almost $700 million market cap, up from $232 million at the start of the year, and the growing recognition of drone warfare by raising cash and shoring up institutional shareholders.
Earlier this week, the company announced that its first quarter revenues of $16.4 million were 10 times higher year on year and in March it won a $4.3 million contract with the US government.
The source: ASX Announcement
