DroneShield Limited (
Patersons Securities Limited ("Patersons") acted as Lead Manager to the Placement and received strong demand from new and existing institutional, professional and sophisticated investors. Peter James, the Company's Chairman, said "We appreciate continuous support from existing investors and welcome new investors to the Company's share register."
Net proceeds from the Placement will be used to fund:
- further development and integration of detection and countermeasure technologies, consistently with end-user requirements;
- an increase in stock levels (detection and countermeasure products);
- expansion of the Company's sales and marketing effort globally; and
- general working capital.
Oleg Vornik, DroneShield's Chief Executive Officer, commented: "We are pleased with the Company's progress. Over the recent four months the Company received its first order for DroneSentinel; established a European demonstration hub; received its first order for a product that includes the portable RadarZero module; substantially furthered its level of engagement with a range of governmental end-users around the world; received a NATO stock number for DroneGun; deployed DroneGuns with the Queensland Police for the upcoming Commonwealth Games in Brisbane; and received its first South American order. This Placement will assist the Company with expanding on these early successes in the nascent counterdrone industry."
Under the terms of the Placement, Patersons and the other brokers participating in the Placement will receive a 6% commission on the funds raised, as well as an aggregate of 3.04 million unlisted Class A options (which expire on 14 June 2019 with an exercise price of $0.22).
The Class A Options will be issued under the Company's existing Listing Rule 7.1 capacity.
The Company provides the following disclosures under ASX Listing Rules 3.10.5A and 7.1A.4(b).
- The dilutive effect of the issue of the Placement (assuming all of the Class A options are exercised) on existing shareholders is as follows.
---------------------------------------------------------------------- Number of % of post Placement securities issued issued share capital Ordinary shares issued under Listing Rule 7.1 9.32m 5.41% Ordinary shares issued under Listing Rule 7.1A 2.84m 1.65% Ordinary shares to be issued assuming all the Class A options issued under Listing Rule 7.1 are exercised 3.04m 1.77% ---------------------------------------------------------------------- Total 15.21m 8.83% ----------------------------------------------------------------------
- The Company issued shares as a placement to institutional, sophisticated and professional investors (rather than as a pro rata issue) as this was considered to be the most efficient and expedient mechanism for raising funds in a timely matter.
- The Company did not enter into an underwriting arrangement in connection with the Placement.
- Fees of approximately $142,584 have been incurred in connection with the issue.
About DroneShield Ltd
DroneShield Ltd (ASX:DRO) (OTCMKTS:DRSHF) is an Australian publicly listed company with its head office in Sydney and teams in the US and UK. We specialise in RF sensing, Artificial Intelligence and Machine Learning, Sensor Fusion, Electronic Warfare, Rapid Prototyping and MIL-SPEC manufacturing.
Our capabilities are used to protect Military, Government, Law Enforcement, Critical Infrastructure, Commercial and VIPs throughout the world.
Through our team of primarily Australian based engineers - we offer customers bespoke solutions and off-the-shelf products designed to suit a variety of terrestrial, maritime or airborne platforms.
DroneShield is proudly exporting Australian capability to customers throughout the world and supporting Australia's defence, national security and other organisations protect people, critical infrastructure and vital assets.
Contact
Oleg VornikCEO and Managing Director
Email: oleg.vornik@droneshield.com
Tel: +61-2-9995-7280
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