Very disappointed at the decision to take the extra in the SPP.

DRO raised about $11M in the rights issue at 30c and planned to take $3M in the SPP, Since the price was high, lots of shareholders applied for the full $30k, possibly expecting to get scaled back.

Instead, management took the lot - $29.4M in the SPP alone - roughly $40M total. This is a company that many didn't expect to need a cap raise at all.

The actual dilution is more than expected and this will create an overhang - lots of shareholders with an extra $30k and a desire to make a profit.

Yes, it makes their balance sheet stronger and could fund a lot of growth but each share is a smaller proportion now.

I was a holder IRL but sold my entire holding just after the open at 35c. Management took advantage of the high SP to grow the company. They were happy to sell for 30c a share. I was happy with 35. May buy back if the price goes back toward 30c.

Placement and SPP at 30c

DroneShield is seeking to raise approximately A$9.0m – A$11.0m via a capital raise comprising of:

•  Placement of approximately $6M-$8M and
•  Share Purchase Plan (“SPP”) of up to $3M 

Given the current market cap, $11M is only about 7% increase. It's going to stop the SP flying higher for a while but shouldn't cause a crash.

Let's hope it allows them to launch some new revenue.