Droneshield sells $3.2m jammers to unnamed Middle Eastern country; shares jump 25pc
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Drone-killer Droneshield has won its first multi-million dollar order, selling 70 of its Dronegun tactical jammers to an undisclosed Middle Eastern country for $3.2 million.
Droneshield (ASX: DRO) says it’s the biggest known order ever placed for anti-drone equipment globally.
It’s certainly the biggest deal the company has inked so far, having received just $35,780 in cash receipts from customers last quarter despite highlighting a $100 million “pipeline” as far back as October.
The shares gained 25 per cent to an intraday high of 22.5c in early Thursday trade.
The DroneGun is a rifle-style, battery-powered product designed to inspect and knock out enemy drone models.
Droneshield says the order has been placed by the ministry of defence of a Middle Eastern nation with one of the largest defence budgets in the world.
The company says its sales pipeline now contains “dozens” of contracts in various stages of advancement, ranging in value from tens of thousands of dollars to millions.
At the end of the March quarter, the company had $3.8 million in cash on hand, having burned $1 million and brought in $35,000 from customers.
At the time, it told investors it predicted it would spend another $1.2 million this quarter, $100,000 of which on research and development and $650,000 on staffing costs.
The company has been contacted for comment.