DroneShield shares fly after US Air Force contract
23 July 2020, Written by Matt Ogg
Update: Since this story was published, DroneShield announced an order from the European Ministry of Defence for its RadarZero portable counterdrone system, sending shares 16 per cent higher to 18 cents each in early trading.
Shares in Australian defence technology group DroneShield (ASX: DRO) have risen by more than 30 per cent today after the company announced it was awarded a US$200,000 (AUD$279,722) contract with the United States Air Force (USAF).
The deal represents the biggest breakthrough for the Sydney-based company since its offerings were chosen as he preferred anti-drone solution for the European Union's police forces in May.
The new deal means DroneShield will deploy multiple units of its DroneSentry integrated detect-and-defeat counterdrone (C-UAS) system at the Grand Forks Air Force airbase in North Dakota.
As part of the contract the US Air Force has acquired an option to acquire additional systems following the initial deployment.
DroneShield CEO Oleg Vornik says this is DroneShield's first US Air Force deployment, and the company was selected as its technology leverages AI software and tracking-defeat automation with little to no impact on those manning it.
"We are immensely proud that the U.S. Air Force, one of the most demanding customers in the world, chose to deploy DroneShield's flagship, fixed site detect-and-defeat system, incorporating our new RfOne MKII sensors," Vornik says.
"The USAF has a substantial requirement for the protection of its bases, in the US and forward deployments, and we look forward to continuing to support the service members and the expanded rollout of our solutions for their protection.
"In addition to our other recent work for the US military and government sector, a key market for us, the need for DroneShield's industry-leading Counter-UAS solutions is expected to grow rapidly as global tensions continue to increase and the drone threat proliferates."
Whilst DroneShield shares are up significantly today at 15 cents each, this is still well short of their level close to the 20-cent mark at the start of 2020 and a high of 46.5 cents in October.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg