The DroneShield Ltd (ASX: DRO) share price is flying higher today following a positive release by the drone technology company.
During early afternoon trade, DroneShield shares are up 7.32% to 22 cents. In comparison, the All Ordinaries Index (ASX: XAO) is marginally up 0.1% to 7,864 points.
What did DroneShield announce?
Investors appear upbeat about the company’s prospects, sending DroneShield shares higher.
According to its release, DroneShield said that it had received a $1.1 million grant award from the Australian government. The cash payment is recognised as a research and development tax incentive for its activities undertaken in 2020.
DroneShield CEO, Oleg Vornik touched on the award, saying:
DroneShield appreciates the substantial support it receives from the Australian Government at Federal and State level. We are a high-tech defence and homeland security business, employing over 30 engineers in Australia presently, and rapidly growing. This grant reflects the world-class cutting-edge R&D work done here in Australia.
The company noted that the grant will be reflected in the cash receipts for its third-quarter report. This is expected to be released sometime in October 2021.
Quick take on DroneShield
A global leader in drone security technology, DroneShield designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure from drones.
Its multi-layered drone countermeasures include detection and disruption products which are much needed in the current environment.
DroneShield share price snapshot
It has been a positive 12 months for DroneShield shareholders, with the company’s shares up 60%. However, during this time, the DroneShield share price has been volatile, moving between 13 cents and 25 cents.
Recently, its shares were trading for as little as 15 cents in early July and are now 22 cents. This reflects a gain of almost 50% in the space of just over a month.
DroneShield presides a market capitalisation of roughly $87.7 million, with approximately 400 million shares on its registry.
The post Why the DroneShield (ASX:DRO) share price is soaring 7% today appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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