RocketDNA Simplifies Group Structure with Full Acquisition of WA Subisidiary

Drone technology solutions company RocketDNA (ASX: RKT) has announced it will acquire the remaining 40% interest in subsidiary RocketDNA (WA), moving to 100% ownership of an entity it already controls.

The shares will be acquired from vendors Investmin, the McKern Family Trust, and the McLeay Family Trust for a consideration of $1 million in new RocketDNA shares, representing approximately 3.5% of issued capital on an indicative basis.

The new shares will be issued at the 20-day volume weighted average price of RocketDNA shares up to 15 June 2026, or approximately $0.024 per share.

Among the vendors are original founders of the subsidiary and current RocketDNA team members including technical director Evan McKern, who holds a 16% interest in RocketDNA (WA) and will receive 40% of the consideration shares to the value of $400,000 and held in escrow for 12 months.

RocketDNA (WA) co-founder Shane McLeay also holds a 16% interest in the subsidiary and will receive the same consideration on the same escrow terms.

No Operational Impact

RocketDNA acquired its 60% interest in RocketDNA (WA) in 2021 and has seen most of its Australian revenue generated through the subsidiary.

The move to full ownership is not expected to impact either the group’s operations, customers or strategy, or its reported net assets, consolidated revenue or profit after tax.

“We already control and consolidate this entity, so nothing changes operationally — we are simply removing the remaining minority interest for a modest scrip consideration and tidying up the group structure,” managing director Christopher Clark said, calling the acquisition a “sensible housekeeping step”.

“We are pleased that the founders of the business, who continue to contribute to RocketDNA, are taking their consideration in escrowed shares which reflects their confidence in the future of the company.”

Positive Cash Flow

The acquisition follows a strong March quarter for RocketDNA, recording its maiden positive operating cash flow of $62,000.

Net operating cash flow for the period improved by $345,000 on the prior quarter while revenue grew 49% year on year and monthly recurring revenue passed $600,000.

Chair David Morton said the recurring revenue model was working well and marked a turning point in the company’s financial maturity.

Completion of the deal is subject to customary conditions, including an amendment to the loan provided by Entech Pty Ltd, which is owned and operated by Mr Shane McLeay, onto commercial terms.