Oleg on ******...

Oleg on ****** https://www.******.com.au/media/droneshield-raises-capital-after-they-said-they-wouldnt-need-to?videoId=3258

More or less the same as what was published to the ASX earlier today.

To answer the Q in the headline he said it's in response to growing opportunities. Interestingly, when he later enumerated many opportunities across the US, EU and also Asia, he did not mention the Middle East.

Whilst I agree on the optics and sympathise with a lot of the anger around the about face on capital raising -- it was only last Tuesday(!) that they said they wouldn't need to raise -- I think it would be difficult to prove that they intentionally misled the market. The interview shows exactly what the Board would say if questioned about the change of heart: opportunities arose and as Oleg put it in the ****** interview, "an offensive capital raising" (33 second mark) and "an opportunity to raise money to take advantage of these new opportunities".

IMHO there's really only two ways to interpret recent events:

1. They're lying through their teeth. Consequently your confidence in the company is shot and the sensible thing to do is to sell and move on.

2. If you still have faith in the company then, taking the interview comments on opportunities at face value, the CR could be a seen as a positive. But given there are no concrete announcements of sales alongside today's CR this would have to be an interpretation based purely on faith in management.

Personally at today's prices I don't see a need to jump in. They've got their $7.5m locked away so let the SPP shake out and reconsider when some tangible progress is made. Given the number of folks who have been burned by the about face I can't see the share price running away anytime soon.

It's been said on these forums before - even if the massive Middle East deal comes through it's unclear what the margins will be and in the short term the net effect could well be negative if it burns cash to produce and ship product and no payment is received for who knows how long.