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DroneShield Turmoil Deepens After $70 Million Insider Sell-Down and US Chief’s Exit

An ASX filing discloses $2.4 million of director sales occurred after incorrect contract details were released to the market.

Overview

  • DroneShield’s CEO Oleg Vornik, chair Peter James and director Jethro Marks sold nearly $70 million of stock, with Vornik disposing of his entire holding.
  • The company’s 16-page response to an ASX query acknowledged $2.4 million of those sales happened after a market announcement wrongly described $7.6 million in US contracts as new orders.
  • Shares plunged more than 30 to almost 40 percent following the disclosures, then fell about a further 20 percent after the sudden resignation of US chief executive Matt McCrann.
  • The stock traded near $1.88 on Thursday, more than 70 percent below its October 9 peak of $6.60, reflecting heightened concern over governance and disclosure practices.
  • DroneShield rejected suggestions the directors timed their trades or notified the company in advance, while investor frustration has intensified in the absence of detailed public comment from senior leadership.