DRO

1.05%

94.0¢ droneshield limited

Ann: $70m Fully Underwritten Placement and up to $5m SPP, page-188

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dave sss

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18/04/24

21:01

Post #: 73415045
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Originally posted by TerribleTadpole: ↑

"I find it hard to believe they need over $100m in cash now" - I think the saga of capital raising over the last 12 months has exposed a serious deficiency in management's understanding of financial management and capital structures.

The problem with capital is that it's "sticky". Once you've raised it, it sits there forever on the balance sheet under "Capital". This is why capital is generally reserved to fund CapEx, resulting in fixed assets that form a permanent counterbalance to the capital. Using vast quantities of capital for current assets like inventory or other OpEx in a post-revenue business leaves the balance sheet seriously unbalanced, and permanently distorts future returns on investment.

You don't need to raise capital to fund short-term inventory for sale, especially on such a short timeline as outlined in the Capital Raising presentation. There are many alternative ways to fund OpEx that would allow the company to leverage its existing capital and drive sales without wreaking the kind of havoc they are now.

It seems to me that Dr Vornig is not the right person to continue as CEO, and the board is seriously deficient in the depth and experience to run a global business. A sensible strategy would be to begin a search for a CEO with the credentials to take Droneshield forward. Once found, Dr Vornig should continue as CTO where he could focus on research and development, and consult on sales, without the distraction and demands of operating beyond his capabilities on the financial and operational front. The company could use some better credentials on the board too. Jethro Marks could consider stepping aside in favour of a more experienced and capable director instead of standing for reelection.

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What is difficult to understand from a shareholder view is what replacing Dr Vornig would do to the tech team?

For me this is the "secret sauce" of the company that has enable the global success to date.

Maybe a sideways move as CTO with someone more finance savvy as CEO would be the best option as suggested

Yep, they aren't perfect. But lets not celebrate what has been achieved by DRO, the staff and the management team

Originally posted by Quesoche: ↑

Vote no on Rem. We all should. I think Oleg should stay if deemed appropriate otherwise post raise it’s time for a specialist team to grow this thing.

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Originally posted by bowman: ↑

Agree, this current team of management is a joke. Inexperience, short sighted, and lacks ambition full stop!

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DRO Price at posting: $1.12 Sentiment: Buy Disclosure: Held
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(20min delay)
Last 94.0¢		Change -0.010(1.05%)		Mkt cap ! $832.8M

Open	High	Low	Value	Volume
95.5¢	96.5¢	94.0¢	$1.636M	1.709M

Buyers (Bids)

No.	Vol.	Price($)
20	187194	94.0¢

Sellers (Offers)

Price($)	Vol.	No.
94.5¢	41815	15

View Market Depth

No.	Vol.	Price($)
10	71984	0.945
20	303382	0.940
16	239232	0.935
17	636599	0.930
8	155561	0.925

Price($)	Vol.	No.
0.950	73374	17
0.955	153438	14
0.960	337781	13
0.965	268405	12
0.970	215590	10

Last trade - 11.13am 05/11/2024 (20 minute delay)

DRO (ASX) Chart

Ann: $70m Fully Underwritten Placement and up to $5m SPP, page-188

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