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Droneshield (ASX:DRO) shares jumped $12.4% to $1.00/sh on Monday morning on the back of over $30M worth of Asia Pacific contracts.
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It’s the latest spike in volatility for Droneshield which has come back onto the radars of day traders in recent history – especially after shorts fell from record highs of over 10% of shares on issue back in February of this year.
(Worth noting is that as of April 7, shorts on the stock are climbing again. The week-behind data shows 5.8% of shares currently shorted.)
Shorts had originally piled on the stock in the second half of 2024 after the company hit a market cap of $2B and shares climbed over $2.50/sh – despite having almost no revenues.
An original shipment of counter-UAV tech to Ukraine originally kicked off interest in the company, but in the years following, it was small-value orders from other government defence entities and even airports that emerged as customers. Not the active warzone of Ukraine.
But today’s news has regenerated interest in the day trader – and HotCopper forum – favourite.
In short, DRO has inked 5 separate contracts “from an Asia Pacific military customer” with payments expected to go through in whole in Q3 of this year.
Notably, the buyer is a reseller: “a wholly-owned subsidiary of a multi-billion dollar, global, publicly listed customer that is contractually required to distribute the products to a major Asia Pacific military government department,” according to the company.
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The company also added: “DroneShield has previously received 7 standalone contracts from this reseller for this customer between May 2024 and January 2025 totalling approximately $12.3 million.”
DRO last traded at $1.00/sh.
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