Analysis of Appendix 3G - Notification of Issue, Conversion or...

Analysis of Appendix 3G - Notification of Issue, Conversion or Payment Up of Unquoted Equity Securities Key Information:

• Entity: DRONESHIELD LIMITED (ASX code: DRO)
• Date of Announcement: Friday, July 26, 2024• Securities Issued: 130,000 options expiring on various dates and with various exercise prices (ASX code: DROAH)

• Issue Date: July 26, 2024• Employee Incentive Scheme: The options were issued under an employee incentive scheme detailed in the 2023 Notice of Annual General Meeting, resolution 6 (link provided).

• Vesting Conditions: Options vest upon the earlier of the company achieving:

• $200 million in revenue
• $200 million in client cash receipts, in any rolling 12-month period.
• Purpose: The options are issued to incentivize key personnel and align employee and shareholder objectives.
• Number of Quoted Securities: 762,550,390 ordinary fully paid shares (DRO)
• Number of Unquoted Securities: 56,144,000 options (DROAH)Main Arguments:
• DRONESHIELD LIMITED is issuing unquoted equity securities as part of an employee incentive scheme.
• The scheme is designed to align employee and shareholder interests by rewarding performance and achieving specific financial milestones.

• The issuance of these options falls under exception 13 of Listing Rule 7.2, which exempts the company from seeking security holder approval.Essential Points:

• This notification provides transparency to the market about the company's issuance of unquoted securities.
• It outlines the details of the employee incentive scheme, including the vesting conditions and the purpose of the issuance.
• It also provides updated figures on the company's quoted and unquoted securities.

Significant Insights and Conclusions:
• DRONESHIELD LIMITED is actively engaging in employee incentive programs to attract and retain key personnel.
• The company is focused on achieving significant revenue and cash receipts milestones.
• The use of performance-based options aligns employee interests with shareholder interests, potentially leading to improved company performance.