Ann: Trading Halt, page-78

"the price went up post the raise by about 300%" – you haven't managed to put it together yet? Let me explain it very simply, step by step...

1. DroneShield did a massive, completely unnecessary capital raising that placed $100 million worth of shares with institutional investors.
2. Suddenly... mysteriously... brokers, journalists, and social media pundits start publishing insanely positive articles mentioning DroneShield, causing a lot of rather silly retail investors to pile in without doing sensible research. We had never seen that before the capital raising.
3. Equally suddenly and mysteriously, a negative article gets published and republished and lot of shares get sold into the hype created in step 2.

I directly blame the stupidity of the board in creating this completely unnecessary volatility. The right way to do that (and this) capital raising would have been:

• Decide whether it's necessary (because it wasn't).
• Provide a proper capital allocation plan, as is warranted by the amount of capital being requested.
• Offer a share purchase plan to existing holders for the whole amount with renounceable rights so those that don't want to take up their entitlements can sell to those who do, and new investors can acquire the rights on the market if they want them.