DroneShield (DRO) Discussion Thread, page-88

DroneShield floated with a market cap around $25m. Our current market cap is over $400m. It’s fair to say this involved dillution to capital raises and performance shares. The capital raises are a reality of getting the company from inception to profitability.

Despite cap raises diluting current shareholders they also offer opportunity. In 3 cap raises I was able to sell a portion of my holding on market higher than the raise amount and repurchase bringing my average cost down. I had this down at 13c. In the last big raise I sold 90% of my holding at 39c and subscribed at the lower price which enabled me to recover all invested money and take some profit while holding my shares free roll.

The dillution from performance shares I encourage. They have held onto the people (and rewarded them) for taking the company from 25 to 400 million market cap.

Now I don’t have a crystal ball but I hope and expect this trajectory to continue to $1b. Do I think management who takes a company from $25m to $1b deserves big remuneration? Absolutely. Is it fair that’s tied to achieving these goals. Absolutely. If you think these people should be removed you should have your head read.