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Microcap drone tech junior Orbital UAV (ASX:OEC) is up 4.55% on thin trades receiving an R&D grant and $2.4 million from the Western Australian government.
That latter payment comes in the way of a state government grant intended to promote the local manufacturing sector, with Orbital set to flesh out its small-scale factory operations in the jurisdiction.
With the $1.9 million R&D payment included Orbital is today declaring its receipt of a total of $4.3 million, though described both as grant funding.
Perhaps of more interest is the company has, with this payment, paid off its $2.4 million in debt – making it debt-free and cashed up just under $2 million.
The WA grant comes from a Department tasked with ‘Science & Innovation’; Orbital UAV specialises in spark ignition propulsion – in other words, internal combustion engines for drones.
According to the company’s website, its product satisfies Department of Defence fuel policies. Between the lines, the company is clearly trying to slip into the supply chain.
With the war in Ukraine showing drones have become modern weapons, the small devices are now firmly embedded in the public consciousness. So too the minds of militaries.
While it’s important to remember the stock is highly illiquid, still, one-year returns are up +20%. The company has 164M shares on issue at 11.5cps. Friday’s upward move was based on less than $8,000 in trades for those playing at home.
Investors keeping watch will likely be looking to see how long the $1.9M in cash is left over after the company’s debt repayments.
OEC last traded at 11.5cps.
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