DroneShield Shares Plunge 16% as ASIC Probes November Filings and 7 Days of Trading
Updated
Updated · Bloomberg · May 12
DroneShield Shares Plunge 16% as ASIC Probes November Filings and 7 Days of Trading
1 articles · Updated · Bloomberg · May 12
DroneShield shares fell as much as 16% on Tuesday, sliding to their lowest level since Feb. 25 after the company disclosed an Australian regulatory investigation.
ASIC ordered the counter-drone company to assist a probe into market announcements issued between Nov. 1 and Nov. 20, according to an exchange filing.
The regulator is also examining trading in DroneShield shares between Nov. 6 and Nov. 12, widening scrutiny from disclosures to share dealing.
The selloff underscores how regulatory reviews of disclosure practices and trading activity can quickly hit investor confidence in listed defense-technology companies.
Amid record growth and a stock plunge, is DroneShield a cautionary tale for the high-flying defense tech industry?
With its former leaders probed for insider sales, can new management restore trust in the booming counter-drone giant?