DroneShield’s Counter-UxS systems attract repeat $5.7m US government order

Security technology developer DroneShield (ASX: DRO) has received a repeat $5.7 million order from an undisclosed US government client for a number of its Counter-UxS (C-UxS) defence systems.

C-UxS systems include multi-domain aerial, ground and maritime surface drones.

The delivery involves multiple DroneShield product lines and is expected to be completed in several stages during the current year.

DroneShield’s US chief executive officer Matt McCrann was pleased to receive the repeat order.

“We are honoured to support the US government and our allies as they look to meet the growing need for advanced Counter-UxS solutions,” he said.

“We value our partnership and look forward to continuing to support our troops and partners wherever possible.”

Complementary arrangement

DroneShield director of business development Tom Branstetter said the company’s product suite would complement the client’s needs.

“Our comprehensive product portfolio paired with high-level manufacturing affords us the ability to rapidly outfit US and partner nations with lifesaving technology while addressing a wide range of operational requirements,” he said.

The company anticipates further material orders from the same client.

Capital raising

DroneShield launched a $75 million capital raising exercise in April to build up its inventory for high-quality customer opportunities.

Approximately $57.5 million was earmarked for equipment, including handheld detection and defeat systems (such as RfPatrol Mk2, DroneGun Mk4 and DroneGun Tactical), on-the-move systems (DroneSentry-X Mk2) and fixed-site systems (RfOne and DroneCannon, which are components of DroneSentry).

It also planned to spend $7.5m of the proceeds on research and development activities, including an investment in artificial intelligence and machine learning for enhanced detection, identification and response to unmanned aerial system threats.

Two weeks after its launch, the company upsized the raising to $100m following strong support from new and existing domestic and international institutions and sophisticated investors.

DroneShield has a sales pipeline totalling more than $500m with over 90 qualified projects at different stages for high-quality government customers and $27m in contracted sales orders currently being fulfilled.