DroneShield Ltd announces the successful completion of its Share Purchase Plan (SPP), which follows the $10.9 million Placement which was complete in February.
The SPP received significant support from DroneShield’s existing shareholders and exceeded the $3 million the company targeted via the SPP. DroneShield received SPP applications at $29.4 million at an issue price of $0.30 per share.
Following the strong shareholder support, the Board has decided not to scale back applications. This is in recognition of the long-term support of investors and to maximize growth opportunities.
Funds will be utilized to accelerate DroneShield’s growth through faster scale-up of inventory for near-term sales, growth of key parts of the team, and general working capital.
Total funds raised under the Placement and SPP are $40.3 million, prior to costs. Once complete, the Company has a robust balance sheet to advance growth with cash of about $50 million and no debt.
2023 predicted as a transformative year
“We are pleased to have received outstanding shareholder support for both the Placement and SPP,” says Oleg Vornik, CEO of DroneShield. “The funds will allow us to take advantage of the highly favorable environment for defense and specifically customer demand for counter drone solutions as witnessed by the Ukraine conflict, as we target 2023 to be a transformative year for DroneShield.”
He continues with, “The SPP proceeds in particular have been significant, and the Board is appreciative of the support from our shareholders. 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 Company is well-funded to execute its growth objectives.”
The Shares applied for under the SPP are expected to be issued on 9 March 2023 with quotation of the Shares expected to commence on 10 March 2023.
Check out other recent industry news and articles at C-UAS Hub News