Ann: Trading Halt, page-54

This is going to be very interesting. I'm curious to understand their reasoning behind the need for a CR, given one was just done a couple months ago.

We know the sector is booming, and sales overall is increasing for Droneshield, so one thing is for certain is that the business isn't struggling. So where does this CR then take us?

Main reason for the last CR below:

• Post transaction pro forma cash balance of approximately $132 million will fund the buildup of inventory to support the strong pipeline of high-quality customer opportunities and the scaling of the engineering team to accelerate development of in-house artificial intelligence (AI) and machine learning (ML) engines and capabilities

So, we know the last CR was for the purpose of building up inventory to support a growing pipeline and increasing the headcount of the engineering team, so that's all good. Since then, the business has achieved an additional 500 million in pipeline, however IMO that wouldn't be enough to justify another CR, as pipeline in itself can be flaky.

So, why another CR? Two reasons come to mind:

1: Major contract announced with an overseas entity looking to fill a large order, and DRO require capital (separate capital to the last CR) to fulfil the needs of that order)
2: Expanding manufacturing to overseas (perhaps US) to help drive further sales over there due to logistical/political reasons?

Only reason I don't believe its point number 2, is due to Oleg going on about manufacturing being done in Australia, and seemingly being proud of it. But anything goes.

Given the just did a CR for the purpose of supporting a growing pipeline, the ONLY reason they could justify a CR this time around is to appease the needs of point number 1.

Does anyone else have any genuine ideas why they would need the funds for a CR? Given one was just completed a couple months ago.

Cheers.