The DroneShield Ltd (ASX: DRO) share price is lifting off in mid-afternoon trade. This comes after the defence contractor announced another contract award.
At the time of writing, DroneShield shares are swapping hands for 18 cents apiece, up 5.88%.
DroneShield secures defence contract
Investors are buying up DroneShield shares after the company updated the market with a positive release.
In a statement to the ASX, DroneShield advised it has received an order for several of its systems from an ‘international government agency’.
The deal, valued at around $2 million, represents ongoing commitments from government agencies, which have sought DroneShield products in the past.
The funds will be received across the March 2022 and June 2022 quarters.
The order consists of an upfront purchase of $2 million with an additional recurring subscription element. Although, DroneShield stated that the latter cannot be estimated at this time, but is expected to be material.
DroneShield CEO, Oleg Vornik commented:
As drones continue to be increasingly used in modern warfare, we are seeing rapidly increasing demand for the DroneShield equipment. With the substantial investment in inventory over the last 12 months, ability to rapidly fulfil orders remains critical in current environment, and we are well placed.
What does DroneShield do?
DroneShield specialises in drone security technology. The company designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure.
Its multi-layered products are centred around detection and disruption from unmanned aerial systems (UAS).
Its key product is the DroneGun, which is a hand-held, lightweight portable weapon that is highly effective against drones.
DroneShield share price summary
Over the past 9 months, DroneShield shares have been moving in a sideways channel from 16.5 cents to 19 cents.
In 2022, the company’s share price is up almost 3% and up 9% in the last month alone.
With a market capitalisation of $75.28 million, DroneShield has room to grow and cement itself as a leading defence contractor.
The company holds more than 418.22 million shares on its registry.