DroneShield announced the completion of its Share Purchase Plan, following a $10.9 million placement completed on 6 February, and laid its plans to use the funds for its growth ambitions.
The ASX-listed company said the funds will be used to speed up DroneShield’s growth through a faster scale-up of inventory for near-term sales, expansion of key parts of the team, and general working capital.
The total amount of money raised by DroneShield from the placement and SPP is $40.3 million (before costs), the company said in a press release.
After completion, the company said it will have a strong balance sheet with cash of about $50 million and no debt, allowing it to accelerate growth.
Existing shareholders of DroneShield provided tremendous support for the SPP, which far outpaced the $3 million that the company had set as its aim.
DroneShield said it was able to receive SPP applications of $29.4 million at an issue price of $0.30 per Share.
Given the strong support demonstrated by shareholders, DroneShield said the board exercised its discretion under the SPP and decided not to scale back applications in recognition of its investors’ long-term support and to maximise growth opportunities.
Oleg Vornik, DroneShield’s CEO, expressed his delight to have received such outstanding shareholder support for both the Placement and SPP.
“The funds will allow us to take advantage of the highly favourable environment for defence and specifically customer demand for counterdrone solutions, as we target 2023 to be a transformative year for DroneShield,” Vornik noted.
Vornik added that the board is grateful for the assistance from its shareholders, especially given the sizeable SPP proceeds.
“The higher proceeds will enable DroneShield to turbo-charge its growth, more rapidly fulfil anticipated near-term contracts, accelerate its technology development, and enhance its customer engagement,” the CEO added.
The shares requested under the SPP are anticipated to be issued on 9 March 2023, and trading in the shares is anticipated to begin on 10 March 2023.
