DroneShield wins Middle Eastern contract
Shares in DroneShield have soared after the drone security firm won its biggest ever order for DroneGuns, a device that resembles a rifle and disables drones electronically.
The $3.2 million order for 70 DroneGuns comes from an unspecified Middle Eastern country allied with western governments.
DroneShield says the country is a sophisticated user of security and defence equipment, with one of the largest defence budgets in the world.
DroneShield shares were up three cents, or 16.7 per cent, at a seven week high of 21 cents at 1055 AEST.
The company is based in Sydney and Virginia in the US, and its DroneGun is a lightweight radio-frequency jamming device with a range of up to one kilometre.
DroneShield chief executive Oleg Vornik said the order is likely to be just the beginning of the company's relationship with the Middle Eastern country's ministry of defence.
"We believe that this is a company-making sale and a game-changer for DroneShield," he said in a statement.
"This sale, the largest ever in the industry for this kind of equipment, establishes DroneShield as the leader in the industry, globally, and places DroneShield well ahead of its competitors in the global anti-drone industry 'land grab'."
The company is pursuing contracts in dozens of countries, and while there is no assurance that any of those opportunities will result in sales, this order is expected to accelerate the adoption of DroneShield products by a range of government and corporate users, he said.
Droneshield said the order for DroneGuns comes against a backdrop of significantly intensified nefarious drone activity in the Middle East, with dozens of reported drone attacks since the beginning of the year.
The company said its ability to fulfil the order requires approval by a US regulator overseeing defence exports.
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