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DroneShield Rout Deepens After Insider Sales, Contract Error and U.S. CEO Exit

The stock has fallen about 75% from October highs following a collapse in investor confidence.

Overview

  • Shares fell another 8% on Friday, leaving the stock down about 75% from its Oct. 9 peak and wiping roughly A$4.3 billion in market value.
  • Securities-regulator data show short positions surged 62% over the past two weeks.
  • Company disclosures said CEO Oleg Vornik and Chairman Peter James were among insiders who sold about A$70 million of stock over six days.
  • DroneShield withdrew a U.S. contracts update after saying the orders were misclassified as new due to an administrative error.
  • U.S. chief executive Matt McCrann departed abruptly, and local media reported the company canceled a planned investor call.