DroneShield (ASX: DRO) up over 40% in three days. Here's why - Kalkine Media

July 19, 2023 05:54 PM AEST | By Sonal Goyal
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Highlights

  • DroneShield share price has surged by more than 63% in the past one month.
  • Recently, the company shared that it has received an AU$33 million contract from a US Government agency.
  • Earlier this month, the company had received an R&D order worth AU$9.9 million.

Shares of DroneShield Limited (ASX: DRO) have substantially risen in the past few days. In the last five trading session, the share price has jumped almost 41%, and in a month, it has risen by nearly 63%. In the first three days of this week, DRO shares have appreciated 40.74%.

DRO shares closed 22.95% higher at AU$0.375 per share on 19 July 2023, although no price-sensitive news was released on the same day.

The 52-week high of DRO is AU$0.420 per share, recorded on 24 January 2023, and the 52-week low is AU$0.155 per share, recorded on 3 October 2023.

Why are DRO shares on the rise?

The potential reason for the rise in DRO shares price can be the AU$33 million contract awarded to the company by a US Government agency. On 17 July 2023, the company revealed that it had received an AU$33 million order for its equipment and multi-year services.

The full payment of the order is expected to be received before the end of 2023.

Earlier this month, the company received an R&D contract of AU$9.9 million from a Five Eyes DoD (Department of Defense). This contract follows another contract of AU$3.8 million from the same customer.

DroneShield shared the expectation of registering a record year this year after documenting a record year in 2022.

On the development, Matt McCrann - DRO’s US CEO said,

Other recent updates

In a company release dated 11 July 2023, DroneShield shared that many of its products have received NATO Stock Numbers (NSN). The allocation of NSN reflects that all NATO countries recognise the product. It includes the United States Department of Defense. The allocation of NSN is significant for non-NATO countries as well as it shows that the products have gained a level of acceptance by military customers.


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