Canberra-based drone technology company Boresight Ltd (ASX: BST) is looking to raise $8 million ahead of a listing on the ASX next month.
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Drone targets the differentiator
The company said in its prospectus lodged with the ASX that it was incorporated in 2020, "with the purpose to provide low-cost aerial drone targets to service western and allied militaries as they tackle how to respond to the rapidly changing battlespace''.
The company said further:
Military customers require a cost-effective and reliable way to evaluate counter drone technologies. Once these capabilities are deployed, they must develop effective tactics, techniques and procedures (TTP's) for their use, and undertake continuous training to ensure that personnel are properly trained, and maintain those skills, throughout the life of the technology. To achieve this, customers require low-cost, disposable training drones (targets) – and lots of them. Boresight was created to meet that need.
The company said it provides target drones which emulate real-world threats, "in a reliable and repeatable manner, at a price point that supports live-fire, testing, destructive evaluation and training without placing undue pressure on defence budgets''.
The company said:
Considerable investment has been made into the optimisation of the manufacture of the target drones, allowing easy scaling of the manufacturing process to meet demand. More recently, Boresight also expanded into ISR Drones (also known as 'camera drones'), which are designed specifically as cost-effective camera drones designed for missions where a live video feed from the drone is required.
Boresight said it had sold more than 6,000 drones to customers globally since its launch and had offices in the US, the United Kingdom, and Australia.
The company has sold drones to 15 militaries across 12 countries, "and has recently commenced low-rate manufacturing in the United States to support local customers''.
Growing market
The prospectus said the market will continue to evolve, with aerial targets of different sizes and complexity needed in the future.
It also said many Western militaries have moved away from using Chinese-manufactured drones for security purposes.
The funds raised will be used to expand the company's engineering and production teams, ramp up production in the United States, increase its additive manufacturing capacity, and further vertically integrate operations.
The company expects to have $8.94 million in cash following the capital raise and to be valued at $41.8 million.
Boresight generated $4.36 million in revenue in FY25, up from $2.77 million, and posted a loss of $596,421, the prospectus said.
The capital raise is expected to close on May 19, with the shares to start trading on the ASX on June 10.
