DroneShield receives approval to fulfil Central American government agency order

DroneShield ASX DRO drone Central American Security Agency
US regulators have granted approval for the sale of DroneSentry and DroneGun Tactical for use by a Central American government agency.

DroneShield (ASX: DRO) will fulfil its first order of drone mitigation systems in Central America after receiving US regulatory approval.

The company’s ability to complete an order for its DroneSentry drone mitigation system and DroneGun Tactical jammer products for use by a Central American government security agency was contingent on getting the go-ahead from US authorities.

With approvals now granted, it paves the way for the firm to proceed with the order, valued at $300,000.

Commenting on the win, DroneShield chief executive officer Oleg Vornik said no government or corporate civil infrastructure operator was immune from drone misuse.

“Inaction is not an option, and the recent events at Gatwick Airport, during which a malicious drone operator shut down England’s second largest airport for approximately 48 hours using an off the shelf consumer drone, stranding 100,000+ passengers, and causing tens if not hundreds of millions of dollars’ worth of damage, have brought this home to decision-makers around the world,” he said.

The regulatory green . light for the drone order follows on from DroneShield receiving approval for the sale of 70 units of its DroneGun tactical jammer to an unnamed Middle Eastern country earlier this year.

The agreement, valued at $3.2 million, was understood to be the largest tactical drone mitigation deal in the industry’s history.

Increasing drone misuse a boon for DroneShield

The Sydney-based company, which has developed a range of products aimed at mitigating the threat of drones in war as well as for civilian applications, has a presence in more than 50 countries, including Australia.

The counter drone technology provider has been fielding an increase in interest for its equipment following the Gatwick Airport incident and the alleged drone assassination attempt on Venezuelan President Nicolás Maduro earlier in the year.

In recent months, it has sold its portable drone jammers DroneGun for use by a Western governmental security agency and has sold DroneGuns for use by the national security agency of a major Asian country.

Speaking with Small Caps from New Zealand, Vornik said the company was readying itself for increased equipment purchases in 2019.

“We’re seeing a lot of interest from airports right across the counties in which we operate in, in addition to the other segments we cover such as military and special events,” he said.

“Drones in some countries, like Australia, are perfectly legal to buy and are the number one Christmas present but as the technology develops and they continue to proliferate, the use of drones will continue to create headaches.”

With the anti-drone industry in the spotlight, Vornik sees a world in the not too distant future where counter drone equipment is declared mandatory in some countries.

Shares in the company jumped 17.2% on the regulatory approval to $0.170.

Lauren has more than seven years’ experience as a business journalist and editor in Australia and Southeast Asia. With specialist knowledge of the resources sector, including oil and gas, she has covered publicly listed companies of all sizes. Lauren has reported across a range of industries including mining and property.