Shares in DroneShield soar as US Marines confirm they will use them in military exercises

Picture: DroneShield/ Supplied.

US Marines will get their hands on DroneShield’s anti-drone gun next month at an annual exercise to test new military technologies.

DroneShield will show off its suite of counter-drone products at the 10-day exercise in the hope of snagging acquisition contracts with the world’s biggest navy. (The Marines are a part of the US Department of the Navy).

The 2018 Urban 5th Generation Marine Exploration and Experimentation Exercise (U5G 18) — held at the Camp Pendleton base in San Diego in March — is where Marines evaluate new technologies used in close combat.

DroneShield’s DroneGun interferes with drone signals and allows a user to take control and guide the device back to land.

“Based on the results of the technical and operational assessments from the March exercise, participants may be invited to participate in future U5G exercises which will progress through more complex scenarios and environments,” the US military invitation says.

DroneShield (ASX:DRO) said it was one of a limited number of participants, and while there are no confirmed orders from the event, shareholders were excited at their inclusion.

The shares gained 12.5 per cent on Monday to 22.5c.

It is still a way from the heights of 27.5c in late October, when the company completed a $2.3 million placement to be used for the rollout of products and further development.

DroneShield’s latest DroneGun Mk 2 model has already been released for testing to the Australian and US militaries and further fast-tracked partnerships are in the works.

“The company is undertaking a number of demonstrations by, and undergoing evaluations by, a number of US and non-US military service and law enforcement agencies who are seeking to add counter-drone capabilities, on a significantly reduced timetable relative to their traditional procurement timeframes,” DroneShield told the market.

Late last year the company announced a winning tender to supply products for the Paraguayan ministry of defence, and is pursuing what it says is approximately 90 contracts globally ranging up to US$45 million each.

The US defence market is said to be worth about $US611 billion ($755 billion).

This article first appeared at Stockhead, Australia’s leading news source for emerging ASX-listed companies. Read the original article here. Follow Stockhead on Facebook or Twitter.

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