Anti-Drone Company Releases New Support Product

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) recently announced in a press release on January 30, 2024, that the company has released a new addition to its product lineup, the Expeditionary Fixed-Site (EFS) Kit, an accessory for the company's DroneSentry-X Mk2 product. DroneShield stated that the kit should make the product more adaptable and easier to deploy.

The U.S. CEO of DroneShield stated, "The DroneSentry-X EFS Kit addresses a huge gap for operators – combining an adaptable Counter-UxS capability with user-friendly features. Our commitment to ease of use is evident in every aspect of the DroneSentry-X EFS, from advanced AI detection to the truly easy-to-deploy configuration."

The features of the EFS Kit include artificial intelligence designed to enhance the product's ability to detect threats in real-time, a portable battery that ensures the product is operational in a wider range of conditions, and the ability to mount and install the product in an intuitive manner without specialized tools.

Angus Bean, the Chief Technology Officer of DroneShield, commented, "We are focused on rapid product development. This includes both new technologies and solution refinement based on end-user mission sets. We want to execute on the complete solution, considering sequence of operation, deployment life cycle, and ongoing support."

Market Predicted to Grow by US$6.44 Billion

A B.B.C. Research Report from 2021 predicted that the market for counter-drone technology would grow to US$6.44 billion by 2031. The report identified several important developments in the market, including technological improvements that make products easier to use and more widely available, as well as growing demand as drones themselves become more ubiquitous.

Markets and Markets stated that the market size for anti-drone technology was worth US$1.2 billion in 2022 and that it should grow to about US$5.2 billion by 2028, with an annual growth rate of 26.6%. Global conflict involving the use of small, easily acquired drones has continued to drive demand for defense technology and does not appear to be cooling off any time soon.

Potential 179% Return on Investment

Analyst Daniel Laing with Bell Potter reviewed DroneShield on December 1, 2023, and rated the company as a "Buy" with a target share price of AU$0.50. Laing based his assessment on the company's ability to bring in AU$80 million in contracts, as well as the company's intention to expand its facilities.

In July of 2023, analyst Darren Odell with Peloton Capital reviewed the company as a "Buy" with a target share price of AU$0.84, and a potential return on investment of 179%. While Odell also cited the company's contracts, he also noted the company's revenue growth. According to the report, the company has seen a 60% increase in its gross margin since the start of 2023.

The company's investor presentation reports a number of catalysts, including a five-year target annual revenue of AU$300 to AU$ 500 million and plans to move to a larger facility.

Ownership and Share Structure

DroneShield reports that it has a cash balance of AU$58.9 million, which is buffered by an AU$400 million in the company's sales pipeline and an order backlog of AU$30 million.

The company reports that management and insiders own approximately 11% of the company, as CFO Carla Balanco owns 1.44% of the company with 8.45 million shares, CEO Oleg Vornik owns 1.40% of the company with 8.18 million shares, CTO Angus Bean owns 1.26% of the company with 7.39 million shares, and Non-Executive Chairman Peter James owns 1.09% of the company with 6.40 million shares.

The largest independent investor, Charles Goode, owns 4.41% of the company with 21.5 million shares, and Strategic investors own 13.99% of the company in total.

Eprius Inc. is the second largest shareholder, holding 3.16% of the company with 18.5 million shares.

According to Droneshield, ten institutional investors were brought on board during its February 2023 placement, and the company has yet to release more details.

There are 612,153,611 million shares outstanding, while free float traded shares make up 83.51% of traded shares, and the company has a market cap of AU$320 million.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd.
2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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