DroneShield Ltd (ASX:DRO, OTC:DRSHF) chief executive Oleg Vornik has moved to reassure investors of his commitment to the company, stressing that its underlying business remains strong.
The counter-drone technology group said its disclosure practices will be reviewed by independent directors Simone Haslinger and Richard Joffe, after the ASX raised concerns last week about the company’s disclosures and securities trading.
DroneShield shares dropped 9.3% to a four-month low of $1.66 on Friday and are now down 75% from last month’s record high of $6.71. The slump follows market scrutiny of a withdrawn announcement about US contracts and questions over $70 million of insider share sales.
“The fundamental business of DroneShield remains strong and unchanged. The company continues to deliver record revenues, expand globally, and invest in technological innovation,” Vornik said.
Chairman Peter James told investors the company remains committed to transparency. “DroneShield is committed to undertaking an independent review of its continuous disclosure and securities trading policies,” he said, noting that the process will be overseen by the independent directors.
The company also defended its performance options scheme and sought to play down concerns that fibre-optic drone technology could render its products obsolete, arguing that reports of fibre-optic drones becoming mainstream do not reflect current conditions in the field.
Shares are 2.04% higher at midday today, at $1.750.