.....a transfer of wealth from johnny-come-lately to those who rode early on and knew how to sell into the madness before implosion.
....how many times must ASX marker participants be tempted and seduced by the next hottest stock in town?
....Answer: Too Many. DroneShield readies $120m equity raise; Bells, MacCap, Shaws on ticket Sarah Thompson, Kanika Sood and Emma Rapaport
Jul 31, 2024 – 9.43am
Divisive small cap DroneShield, which fell 43 per cent within a week after having its valuation questioned in a news interview, was out rattling the tin on Wednesday morning.
Street Talk understands Bell Potter, Macquarie Capital and Shaw and Partners were shopping a $120 million placement at $1.15 per share, which was a 17.3 per cent discount to the last close and 18.9 per cent lower than the five-day volume-weighted average price. It represented 13.7 per cent of shares on issue.
Term sheets sent to fund managers said DroneShield would spend $90 million on its technology development plan and $20 million on strategic bolt-on acquisitions. It has said it has a $1.1 billion pipeline, and is capitalised at $1 billion on the ASX.
Shares in the drone detection and defence company last traded at $1.39 apiece to be up 266 per cent this year.
It last raised $100 million at 80¢ a share, which was a 28 per cent discount to the last close and 19 per cent lower than the five-day volume-weighted average price. That raise, done in April, was used to accelerate delivery of its counter-drone systems to meet customer demand.
