- DroneShield (DRO) has received firm commitments from sophisticated, professional and institutional investors for a $7.5 million placement
- 60 million fully paid ordinary shares will be issued at 12.5 cents
- Additionally, eligible shareholders can participate in an upcoming share purchase plan (SPP) to raise $1.5 million
- Each shareholder will be entitled to apply for up to $30,000 worth of shares at the same issue price as the placement
- The funds will go towards scaling up its business to support the U.S., Europe and other regions as they emerge from the COVID-19 slowdown
- DroneShield will also use the money to repay a $600,000 research and development tax incentive loan
- Company shares have dropped 8.33 per cent and are trading for 13.8 cents
DroneShield (DRO) has received firm commitments from sophisticated, professional and institutional investors to raise $7.5 million through a placement.
The company will issue 60 million fully paid ordinary shares at an issue price of 12.5 cents each.
The issue price represents an 18.69 per cent discount to the 15-day volume-weighted average price (VWAP) of DroneShield's shares.
Placement shares are expected to be issued on August 13.
Additionally, DroneShield will give eligible shareholders the opportunity to participate in a share purchase plan (SPP) to raise $1.5 million.
Each shareholder will be entitled to apply for up to $30,000 worth of shares. The company has the right to increase the size of the SPP or scale back applications at its discretion.
The closing date of the SPP is September 3 and the new shares are expected to be issued on September 10.
DroneShield is raising the capital to progress existing operations and is continuing to execute its business plan.
"This capital raise enables DroneShield to take full advantage of opportunities for rapid growth, that are currently emerging across several key markets, including the US Government and military, and the European airport sector," CEO, Oleg Vornik said.
Specifically, the funds from the placement and SPP will go towards scaling up the sales and marketing resourcing team to support the U.S., Europe and other areas as they emerge from the COVID-19 slowdown, additional resourcing to support airport trials, and scaling up the Australian engineering team.
Additionally, the money will be used for financing activities such as investing in long-lead items for inventory to facilitate sales and demonstrations, repaying the $600,000 research and development tax incentive loan, and for general working capital.
Company shares have dropped 8.33 per cent and are trading for 13.8 cents each at 11:37 am AEST.