Orbital Corporation Ltd (ASX: OEC) has announced it will raise A$3.0 million (before costs) through a placement of approximately 14.2 million new fully paid ordinary shares at A$0.21 per share. Orbital UAV is a world leader in the design and manufacture of integrated propulsion systems for military drones. The company has secured firm commitments for the placement, which is expected to be completed around 28 August 2025 under its existing placement capacity, pursuant to ASX Listing Rule 7.1.
The placement saw strong support from new institutional and sophisticated investors, alongside existing investors. The funds raised are intended to bolster the company’s financial position, facilitating its next growth phase and the execution of its business plan. Peloton Capital Pty Ltd acted as the Lead Manager for the Placement.
Orbital UAV intends to use the funds to upgrade and expand its manufacturing and testing facilities, allocating approximately $2 million to advanced manufacturing technology and test equipment upgrades. A further $0.3 million will be directed to increased global business development activities, including supporting the recent appointment of Steven Osborne as Business Development Manager in the US, as well as ongoing efforts in the Asia Pacific and Middle East regions. An additional $0.5 million will enable accelerated product development to capitalise on opportunities arising from the U.S. Drone Dominance Policy.
According to Chairman Kyle Abbott, the company is pleased to welcome new institutional and high-net-worth investors to its share register. The funds raised will be used to pursue revenue growth through increased investment in business development and to capitalise on opportunities from the U.S. Drone Dominance Policy. The company is also focused on upgrading its internal manufacturing capability and engine development facilities to reduce costs and product development timeframes, with the objective of increasing shareholder value.
