DRO

4.88%

$1.72 droneshield limited

Ann: $70m Fully Underwritten Placement and up to $5m SPP, page-205

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19/04/24

08:26

Post #: 73418097
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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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How many Aussie boards/ companies have contracts with the DOD, NATO and a list of other governments and goverment departsments worldwide?

You and others continue to have opinions that the market is always laughing at

100s of millions dollars being traded on market, 100 million being raised

Share price appreciating 500% in a few years

Making profits

If you wrote a book about it and took away the characters it would be one of the biggest success stories on the ASX in recent years

Its Oleg derangement syndrome multiplied by those that completely missed the bus

Perfect storm for holders, perfect nightmare for non holders

DRO Price at posting: $1.12 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $1.72		Change 0.080(4.88%)		Mkt cap ! $1.311B

Open	High	Low	Value	Volume
$1.63	$1.74	$1.63	$19.21M	11.29M

Buyers (Bids)

No.	Vol.	Price($)
1	30000	$1.72

Sellers (Offers)

Price($)	Vol.	No.
$1.73	49024	2

View Market Depth

No.	Vol.	Price($)
2	1168	1.700
3	5899	1.690
1	500	1.685
5	13606	1.680
2	57228	1.675

Price($)	Vol.	No.
1.725	49024	2
1.730	96630	3
1.735	13111	2
1.740	387441	20
1.745	31411	7

Last trade - 16.10pm 28/06/2024 (20 minute delay)

DRO (ASX) Chart

Ann: $70m Fully Underwritten Placement and up to $5m SPP, page-205

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