The DroneShield Ltd (ASX: DRO) share price isn't going anywhere on Thursday as the company prepares to announce a capital raise.
The stock was put in the freezer at the request of the company this morning, where it could remain until Monday.
The DroneShield share price last traded at 37 cents.
Let's take a closer look at the artificial intelligence-based drone detection software provider's trading halt.
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DroneShield share price on ice amid capital raise
It might be a long day for fans of ASX defence stock DroneShield, as the company's share price remains frozen ahead of potentially big news.
It's expecting to make an announcement regarding a proposed capital raise. That's all we know for sure.
However, reports claiming DroneShield is aiming to raise between $9 million and $11 million to fund its inventory build and grow its engineering and sales teams have emerged.
The company is offering new shares for 30 cents apiece under a placement and share purchase plan, the Australian Financial Review reports.
The stock will remain on ice until the announcement's release or Monday's open, whichever is sooner.
Interestingly, the company described its "strong bank balance" earlier this week. It held $10.3 million in cash at the end of the December quarter. That figure had grown to $14.1 million by Tuesday.
It also brought in a record $15.6 million of cash receipts in 2022 and boasts a record order backlog of $19 million and a sales pipeline of more than $200 million.
And that might just be the start. DroneShield CEO Oleg Vornik said the company anticipates "another record year", continuing:
2023 is expected to be a transformative year for DroneShield, following our maiden $11 million sale order in December followed by another $11 million order from a different government, as the counterdrone industry continues to rapidly grow, with DroneShield as a pioneer and global leader in this sector.
The DroneShield share price has more than doubled in the last 12 months, lifting 118%. Most of that gain has come over the last seven weeks, wherein the stock has surged 95%.
