- DroneShield shares increase by 20.97% today due to announcement
- DroneShield partner with a US gov organisation in the mid-Atlantic states
- The deal includes a US military training area available to demonstrate the DroneGun and Drone Detection sensor products
- The training area is facilitated by the organisation, with no cost to DroneShield
- The news follows reports of Iran releasing their own anti-drone jammer and the emerging $1.85 billion estimated counter-drone market by 2024
DroneShield‘s share price soared today as the company announced its new partnership with a government organisation headquartered in a U.S. Mid-Atlantic state. As part of the deal, the organisation provides a demonstration area for use of DroneShield products. The move comes as anti-drone companies call on Western militaries to maintain their edge in what’s becoming the ‘anti-drone’ or ‘counter-drone’ arms race.
The supplied military training ground is to be used to demonstrate the the DroneShield technology to other US government organisations – whether this also doubles as a testing facility we are unsure. The disclaimer here however, is that the government organisation will also pay no cost towards DroneShield’s tactical drone jammer the formidable ‘DroneGun‘.
Some key factors
A big equation in this recent partnership is the December 2016 announcement by Iran that their military had developed a drone rifle designed to bring down commercial drones. Comments towards the release suggest the Iranian military interests are ‘adversarial’ to that of Western militaries, a move which highlighted the urgent need for drone detection and counter-measure products.
Keep in mind that the DroneGun’s GPS jamming capabilities (it’s secondary payload to RF jamming) are illegal for public use in most countries – by adopting this exact technology, it’s not unlikely that the US military intend to use the DroneGun for all its provided functions. Whether this will result in ‘exclusive’ technology use of GPS jamming, it’s too soon to know.
Some of the technology being utilized by the training field includes some of DroneShield’s previously highlighted products.
The sensors detect drones and attempt to match them to their brand, size and type, which are then sent as an alert to a central point system. This can make operators aware of drones before they arrive, sometimes outside line-of-site.
- Omni Sensor: 180 degree wide angle drone detection sensor with the effective range of up to 200m.
- Long Range Sensor: far reaching drone detection with the effective range of up to 1km in a 30 degree cone.
- Onsite processor: drone detection in a stand-alone closed loop environment.
The DroneGun uses a mix of Radio Frequency (RF) jamming and GPS jamming to either halt drones, send them back to their pilot or drop them out of the sky. It will be interesting to see if the testing ground included in the deal results in some videos of the DroneGun in action
- DroneGun: tactical drone jammer providing effective countermeasures with an up to 2km effective range.
On the ASX, we saw a 20.97% increase in share price in just a few hours, leaping from 0.340 to 0.390, and then closing at 0.375. What this means for investors is that anyone who jumped on ASX:DRO shortly after they IPO’d in Australia will have almost doubled their original investment by now.
Considering the booming anti-drone market, one can only assume ASX:DRO will continue to steadily improve in the charts – recent sales to the national security agency of an Asian country, and to the Turkish Prime Ministry (NATO force) suggest the call for counter-drone sensors and solutions will only increase.
Furthermore, ASX:DRO has quite an interesting sales model, with a global network of over 30 distributors in approximately 50 countries, leaving the heavy saleswork to others. This can allow DroneShield to focus on the research and production areas which have so far proved effective towards buyers.
ASX:D13 (Department 13) is another anti-drone company we have investments in, and believe that the worldwide surge in counter-drone solutions will likewise propel them up the share charts as well. Keep an eye on them in the near future, or put them on your watchlist for 2017.
Who is DroneShield?
We first learned of DroneShield when it was announced they would be the ones protecting the Boston Marathon after the previous year’s fatal terrorist bombing. We thought that was a move that took integrity, not just trying to line their own pockets. When they announced they were opening up a Sydney office and doing an Australian IPO, we couldn’t miss the chance to invest!
The company is currently based in Sydney and Virginia, a world-wide leader in drone security technology. They developed the pre-eminent drone security solution (DroneShield) that protects people, organisations and critical infrastructure from intrusion from drones. Its leadership brings world-class expertise in engineering and physics, combined with deep experience in defence, intelligence, and aerospace. Heavy spending into its research sector has recently resulted in the DroneGun – a tactical anti-drone weapon capable of taking down drones peacefully within a nifty range.
Can I invest in the company? How much are shares?
Yes you can! To invest in DroneShield, simply open an account with a broker (we use the CommSec app) and select DRO on the ASX to trade in shares. We’ve seen the price of shares hover between 0.190 – 0.220, and up to 0.270 with announcements like the DroneGun, Asian NSA and Turkish NATO sale. In regards to this most recent partnership with a US government organisation, DroneShield spiked today at 0.390 a share! DroneShield also keeps in touch with their investors in the latest news and press releases via ASX and via their investors portal.
Check out some of the “buy buy buy!!” comments regarding DRO at the moment on the discussion over here.
Having some academics in DroneSec, we realize the importance of time and research. We believe that any research in the early stages of scientific developments needs a little incubation, and are positive the company will continue to grow into 2017 and beyond.