Aurora Labs Limited has raised approximately $5.5 million through a two-tranche placement to accelerate the manufacturing and development of its next-generation drone propulsion systems, with strategic backing from Adelaide-based Sovereign Propulsion Systems (SPS).
The placement, which received support from both new and existing institutional and sophisticated investors, will fund Aurora’s propulsion projects for Unmanned Aerial Systems (UAS) and guided munitions, as well as expand manufacturing capacity at the company’s Canning Vale facility in Western Australia, the company said in an ASX release.
Aurora Chief Executive Officer Rebekah Letheby said the outcome reflected growing investor confidence in the company’s technology and commercialisation strategy.
“The success of this placement, supported by SPS alongside high-quality institutional and sophisticated investors, is a strong endorsement of Aurora’s technology and strategy,” Ms Letheby said.
“The collaboration with SPS delivers immediate capability to validate our propulsion systems in aerial environments, representing a critical milestone as we move towards commercialisation.”
Under the new agreement, SPS – a veteran co-owned company specialising in Australian-made UAV and robotic systems – will conduct aerial testing of Aurora’s propulsion systems in South Australia throughout 2026.
In return, SPS will receive exclusive distribution rights for the technology across AUKUS partner countries for a fixed three-year term.
Aurora said the partnership would strengthen its position within Australia’s sovereign defence manufacturing and supply chain.
Bell Potter Securities Limited acted as sole lead manager and bookrunner for the placement, which was upsized following investor demand.
Letheby said the company was now well positioned to “accelerate development and capture opportunities in the rapidly growing UAS market.”
The content of this article is based on information supplied by Aurora Labs Limited. For more information, please refer to the official company announcement and communications from Aurora Labs. Please consult a licensed and/or registered professional in this area before making any decisions based on the content of this article.
