DroneShield has announced a new $5.2 million contract from an existing customer that supplies its technology to an unnamed European military. This announcement signals a return to normal operations for the company, which recently faced scrutiny after its chief executive, chairman, and another director sold over $70 million in company stock without providing an explanation. DroneShield is an Australian company focused on developing advanced drone detection and countermeasure solutions. Their offerings include a variety of sensors and systems designed to protect against drone threats.
The defence technology firm currently discloses any contract it receives above $5 million. However, the company plans to increase the threshold for disclosing contract wins to investors to $20 million next year. This adjustment comes after an incident earlier this month when DroneShield mistakenly announced a major new US government contract. The company has since implemented additional verification systems to ensure the accuracy of contract announcements made to the ASX.
DroneShield clarified that the $5.2 million deal represents an extension of an existing contract with a vetted European re-seller. This re-seller has placed over $70 million in orders with DroneShield over the past three years. The company confirmed it possesses all the necessary hardware in stock to fulfil the order. They anticipate receiving a cash payment for the order in the final quarter of the year.
Following the announcement, shares in DroneShield experienced a surge, climbing as high as 16 per cent. The shares were last trading up 10.6 per cent, reflecting positive market sentiment following the contract news.
