Shares in NSW drone tech firm take off on US defence deal

Shares in a Sydney-based drone security company soared after it inked a deal with one of most demanding defence customers globally.

Sydney-based company DroneShoield has inked a deal with the US Department of Defence. Picture: Olivier Douliery / AFP

A Sydney-based drone security company has inked a deal with the US Department of Defence, sending its shares soaring.

DroneShield has developed body-worn, vehicle-based and stationary technology that detects and countermeasures threats from drones, which are increasingly being used in military environments to commit remote acts of terrorism and espionage.

The company announced on Thursday it had secured one of most demanding defence customers globally for its DroneShieldCompleteTM product, saying the US department was providing funding for an agreed list of feature enhancements.

The project should span over several months, the company says, and multiple equipment purchases are expected to follow.

Chief executive Oleg Vornik said the deal was a material milestone in cementing DroneShield’s relationship with the world’s biggest defence customer.

“Further orders for other DroneShield solutions are expected as part of developing a trusted supplier relationship with this customer,” Mr Vornik said.

The company didn’t provide figures but said it expected the orders would be substantial and promised to give dollar amounts to the market when available.

Drones are increasingly being used in military environments. Picture: Ayman Henna/AFP

Shares in DroneShield soared 50 per cent to 21 cents an intraday trade before settling back to 18 cents.

The company announced on Tuesday it had raised $17 million from share issues to fund its growth plans.

Also on Thursday, Perth-founded aerial imaging firm Nearmap announced a capital raising of at least $70 million to fund its ambitions, including expanding its US operations.

The company uses planes to capture high-resolution images that are used by governments, utilities, private companies and even property investors assessing prospects remotely.

Nearmap shares were placed in a trading halt ahead of the announcement and were last priced at $2.89.