Shares in DroneShield Ltd (ASX: DRO) are lifting today after the company received its first order under the EU Police Framework Agreement.
In the opening minutes of trade, the DroneShield share price shot up to an intraday high of 18.5 cents. However, at the time of writing, shares in the defence contractor have retreated to 17.7 cents, up 1.14%.
What did DroneShield announce?
DroneShield advised that European police forces have placed an initial order for its DroneGun Tactical products.
During May last year, the company won a competitive tender to supply counter unmanned aerial systems (UAS) for European police. The process, which was run by Belgium Police, was selected with a European-wide framework.
Under the agreement, European police forces would be equipped with the DroneGun Tactical products. While no purchase quantities were stated in the release, the deal is expected to produce periodic sales over time. Furthermore, the company anticipates that the framework will lead to purchases of other DroneShield equipment, such as RfPatrol and others.
DroneShield's Benelux region partner, ForcePro BV, has been selected to manage sales, and provide training and local support.
DroneGun Tactical explained
DroneGun Tactical is a portable, long range counter measure used against UAS threats.
When attacking a target, the high-tech gun safely brings the enemy UAS down to ground with no peripheral damage, protecting the surrounding environment.
What did the CEO say?
Commenting on the contract, DroneShield CEO Oleg Vornik said:
Due to COVID, there have been initial delays in mobilisation of orders under the agreement, which have now commenced despite continuous COVID constraints in Europe. While this initial purchase is small at approximately $100,000, it represents the first purchase under what we expect to be a multi-million-dollar agreement supplying DroneGuns and associated counter-UAS products across dismounted, vehicle and fixed site range, to police forces across EU.
DroneShield share price review
The DroneShield share price has had a bit of an up-and-down year. The company's shares reached as high as 25 cents at the beginning of last year, before falling to 8.4 cents in March.
In the last 3 months, the DroneShield share price has been hovering between 17 cents and 20 cents.
