Sydney, Jan 30, 2026, 17:29 AEDT — After-hours
- After the Sydney close, DroneShield slipped 7.5%, finishing at A$3.32.
- The counter-drone company filed to list 4.565 million new shares, all stemming from exercised performance options.
- Traders are eyeing additional stock overhang ahead of the company’s late-February earnings report.
Shares of DroneShield Limited tumbled on Friday following the company’s announcement that it has filed to issue millions of new shares, fueling concerns over potential near-term selling pressure.
The stock ended at A$3.32, slipping 7.5% from A$3.59, after fluctuating between A$3.26 and A$3.52 during the session. (Google)
The key point now: this new stock stems from employee awards, with the company warning some holders might sell. Given how volatile the share has been lately, even a modest increase in supply could shift the price.
In Australia, “performance options” are equity awards that turn into ordinary shares once specific conditions are fulfilled. Applying for “quotation” is what allows those shares to be listed and traded on the ASX.
DroneShield lodged an Appendix 2A on Thursday, seeking quotation for 4,565,000 fully paid ordinary shares. These shares stem from the exercise of performance options that vest in November 2025 and January 2026. The company noted the shares were issued for nil consideration and carry no sale restrictions, expecting “a number of employees” to sell. (Company Announcements)
The new stock makes up only about half a percent of DroneShield’s total issued capital, according to the filing. Still, it arrives amid heightened market sensitivity to insider and employee sales.
DroneShield provides systems designed to detect and neutralize unauthorized drones, offering both hardware and software solutions aimed at military and security clients, the company’s website states. (DroneShield)
After the market closed, the chatter shifted to who’s unloading shares and why. CEO Oleg Vornik told The Nightly he sold stock to cover a hefty tax bill on vested options, noting “half of it was tax.” Meanwhile, short seller Plato Long Short Fund flagged the insider selling as a “governance red flag,” according to the report. (The Nightly)
Investors face the risk that ongoing option exercises and employee sales will steadily flood the market with shares, dampening any rally. When volumes dry up, price swings can accelerate sharply, going either way.
As the Sydney session kicks off on Monday, traders will be watching to see if the stock holds around A$3.30 or if selling pressure pushes it below recent lows. They’ll also keep an eye out for any new ASX notices related to option conversions or director dealings.
Looking ahead, the company’s next major event is its earnings report, scheduled for Feb. 24, as noted on the market calendar. (Marketindex)
