DroneShield withdraws incorrect deal announcement after shares surge 8.5%
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More news: DroneShield has withdrawn an ASX announcement released this morning, which incorrectly informed investors that it had secured $7.6 million across three new contracts with the US government.
The company said the contracts detailed in the earlier announcement — which saw DroneShield shares surge 8.5% before entering a trading pause — "do not represent new orders."
The contracts were previous orders that were reissued by the same customer due to regulatory updates, DroneShield said.
What they said: "The November contracts were inadvertently marked as new contracts rather than revised contracts due to an administrative error," the company noted.
"DroneShield is taking steps to prevent this error from reoccurring."
DroneShield shares rally on fresh US government contracts
More news: DroneShield shares climbed in morning trade after the counter-drone manufacturer secured a package of contracts with the US government worth a combined $7.6 million.
Shares were up 8.7% to $3.50 at 11am AEDT. The stock is down 47% over the last month but has surged 358% this calendar year.
DroneShield secures $7.6m in contracts with US government
The news: Counter-drone technology company DroneShield has received a package of three standalone contracts with the US government totalling $7.6 million.
The numbers: DroneShield CEO Oleg Vornik said the latest deal takes the company up to 78 purchase orders for the year, with a median order size of $400,000. This compares to 66 orders, and a median order value of $200,000, for 2024.
The context: DroneShield will deliver the handheld systems for the latest contracts in Q4 2025, with cash payment expected in Q4 2025 of Q1 2026.
What they said: "Moving forward, taking into account the substantial revenue growth of the business in 2025, the announcement threshold for received orders in 2026 will increase from the current $5 million to $20 million, unless there is a further rationale to announce a received smaller order," said Vornik.
