DroneShield, a defence small-cap company, is under scrutiny following a series of director share sale notices released after 7 pm on Wednesday. The company specialises in developing counter-drone technology and solutions to protect against unmanned aerial vehicles. It aims to mitigate risks from drones across various sectors, including defence, security, and critical infrastructure.
Director Jethro Marks sold $4.9 million worth of incentive shares that vested last week, while chairman Peter James offloaded $12.4 million worth of shares. Chief executive Oleg Vornik sold $49.5 million worth of newly vested shares. Market observers anticipate volatile trading in DroneShield shares following these transactions.
The share sales occurred shortly after DroneShield withdrew an ASX announcement publicising a $7.6 million contract with the US government. The company clarified that the announcement mistakenly referred to an old order. The initial announcement caused a spike in share price, which was later pared back following the retraction.
Fund managers have expressed concern over the timing of the share sales, especially given management’s previous statements about the company’s pipeline. The worry is that investors may find it difficult to maintain confidence, particularly as the stock is trading at a high multiple. These sales raise questions about the company’s future prospects and the leadership’s commitment.
