DroneShield (ASX:DRO) raises $40.3m following “outstanding” shareholder support for SPP

• DroneShield (DRO) smashes its $3 million share purchase plan (SPP) target, receiving applications totalling $29.4 million
• The company says given this strong shareholder support, it has decided to not scale-back applications — meaning it will pocket the full amount subscribed for
• The SPP follows a $10.9 million placement that DRO wrapped up in February, bringing the total raised by the company to $40.3 million
• Droneshield plans to use the funds to accelerate growth by scaling-up inventory for near-term sales and growing its key team
• DroneShield is down 10.67 per cent, trading at 33.5 cents at 12:48 pm AEDT

DroneShield (DRO) has received “outstanding” shareholder support for its share purchase plan (SPP), raising over $25 million more than it initially sought.

Applications from existing shareholders for the SPP totalled $29.4 million — smashing the company’s target of $3 million.

The shares were issued at a price of 30 cents and, given the support shown by shareholders, the DRO board has exercised its discretion to not scale back applications. This means it will pocket the full amount subscribed for.

The shares applied for under the SPP are expected to be issued on March 9.

Droneshield said it would use the funds to accelerate growth by scaling-up inventory for near-term sales and growing key parts of its team.

“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,” DroneShield CEO Oleg Vornik said.

“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 share purchase plan follows a $10.9 million placement that DRO wrapped up in February.   

Altogether, the company has raised $40.3 million before costs, leaving DRO with a “robust” balance sheet of approximately $50 million and no debt.

DroneShield shares were down 10.67 per cent and trading at 33.5 cents at 12:48 pm AEDT.