IPO Watch: Drone parachute maker Parazero is set to join the ASX on Monday
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Israeli drone parachute-maker Parazero is set to join the local bourse on Monday.
Parazero — whcih has invented a solution to stop crashing drones from hitting people on the head — will ring the ASX bell on Monday after raising $5 million in an initial public offer.
The business, which was founded in 2014 by a team of avionic professionals and drone operators, sold 25 million shares at an offer price of 20c.
Parazero’s (ASX:PRZ) flagship product is SafeAir, a system which shuts off rotors in the event a drone looks like it’s going to crash, the enabling a handy parachute so it can glide to safety.
So far Parazero says its supplied 1000 different drone systems with its technology, ranging from safety chutes for units weighing 2kg to security systems for 350kg drones.
At the end of 2017, the company had $US257,000 in assets on hand including $54,000 cash.
In 2017 the business ran at an operating loss of $2.5 million.
Here’s the product in action:
Parazero is planning to spend $1.7 million from the raise on research and development projects and $1.4 million on sales and marketing to spread awareness of SafeAir products and its applications.
The listing of the company has involved Diverse Security Needs fully acquiring the Parazero Israel business and then renaming itself Parazero.
The company issued 51.5 million shares to Parazero Israel shareholders, as well as 8.4 million replacement options to Parazero Israel employees as part of the acquisition.
Here’s a video of a drone crashing into a crowd in Japan — which ParaZero says could have been prevented if its technology had been equipped: