Completes $2.55 Million Placement
Completes $2.55 Million Placement
Sydney, Mar 23, 2018 AEST (ABN Newswire) - DroneShield Limited (ASX:DRO) (OTCMKTS:DRSHF) ("DRO" or the "Company") is pleased to announce it has received commitments from institutional, professional and sophisticated investors to raise $2.55 million via a placement of 12.17 million ordinary fully paid shares at an issue price of $0.21 per share ("Placement"). The new shares will be issued utilising the Company's existing placement capacity pursuant to ASX Listing Rule 7.1 and Listing Rule 7.1A. The issue price under the Placement represents a 21% discount to the Company's last traded price and a 22% discount to the Company's 15 day volume weighted average market price prior to the date of this announcement.

Patersons Securities Limited ("Patersons") acted as Lead Manager to the Placement and received strong demand from new and existing institutional, professional and sophisticated investors. Peter James, the Company's Chairman, said "We appreciate continuous support from existing investors and welcome new investors to the Company's share register."

Net proceeds from the Placement will be used to fund:

- further development and integration of detection and countermeasure technologies, consistently with end-user requirements;

- an increase in stock levels (detection and countermeasure products);

- expansion of the Company's sales and marketing effort globally; and

- general working capital.

Oleg Vornik, DroneShield's Chief Executive Officer, commented: "We are pleased with the Company's progress. Over the recent four months the Company received its first order for DroneSentinel; established a European demonstration hub; received its first order for a product that includes the portable RadarZero module; substantially furthered its level of engagement with a range of governmental end-users around the world; received a NATO stock number for DroneGun; deployed DroneGuns with the Queensland Police for the upcoming Commonwealth Games in Brisbane; and received its first South American order. This Placement will assist the Company with expanding on these early successes in the nascent counterdrone industry."

Under the terms of the Placement, Patersons and the other brokers participating in the Placement will receive a 6% commission on the funds raised, as well as an aggregate of 3.04 million unlisted Class A options (which expire on 14 June 2019 with an exercise price of $0.22).

The Class A Options will be issued under the Company's existing Listing Rule 7.1 capacity.

The Company provides the following disclosures under ASX Listing Rules 3.10.5A and 7.1A.4(b).

- The dilutive effect of the issue of the Placement (assuming all of the Class A options are exercised) on existing shareholders is as follows.
                                   Number of     % of post Placement 
                           securities issued    issued share capital 

Ordinary shares 
issued under Listing Rule 7.1          9.32m                   5.41%  

Ordinary shares issued 
under Listing Rule 7.1A                2.84m                   1.65% 

Ordinary shares to be 
issued assuming all the Class A 
options issued under
Listing Rule 7.1 are exercised         3.04m                    1.77%  
Total                                 15.21m                    8.83% 

- The Company issued shares as a placement to institutional, sophisticated and professional investors (rather than as a pro rata issue) as this was considered to be the most efficient and expedient mechanism for raising funds in a timely matter.

- The Company did not enter into an underwriting arrangement in connection with the Placement.

- Fees of approximately $142,584 have been incurred in connection with the issue.

About DroneShield Ltd


Based in Sydney, Australia and Virginia, USA, DroneShield Ltd (ASX:DRO) (OTCMKTS:DRSHF) is a worldwide leader in drone security technology. The Company has developed pre-eminent drone security solutions that protect people, organisations and critical infrastructure from intrusion from drones. Its leadership brings world-class expertise in engineering and physics, combined with deep experience in defence, intelligence, and aerospace.



Oleg Vornik
CEO and Managing Director
Tel: +61-2-9995-7280

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