Just months after DroneShield’s CEO, chair and director sold almost $70 million worth of shares between them, the corporate watchdog has confirmed it is investigating the company.
In an ASX announcement on 12 May, DroneShield advised it had received a notice from ASIC requiring it to provide reasonable assistance in connection with an investigation under the Corporations Act.
“DroneShield will co-operate fully with the investigation regarding announcements and information provided to the Australian Securities Exchange between 1 and 20 November 2025, and trading in Droneshield shares between 6 and 12 November 2025,” the company said.
“It is not clear what action, if any, may result from ASIC’s investigation.”
An ASIC spokesperson has since confirmed the update to Investor Daily but was unable to comment further while the matter is under investigation.
Shares in the defence tech company are down over 11 per cent as of late morning on 12 May following the announcement.
The news follows controversy for the firm in November of last year, when chief executive Oleg Vornik and chair Peter James, along with director Jethro Marks, sold nearly $70 million worth of DroneShield shares between them.
The selldown sparked a sharp share price slump that month, and while the stock has since recovered some ground, it remains below its October 2025 peak. DroneShield has subsequently established a minimum shareholding policy for all directors and members of senior management in response to an independent review of its governance.
In the same month, it was revealed the company had also mistakenly disclosed a $7.6 million uplift in order flow from three existing contracts as if it were a new contract.
Once considered an ASX small-cap market darling, DroneShield is a defence technology company specialising in what it describes as AI-powered counter-drone and electronic warfare systems. Its customers include governments, police and infrastructure owners.
The news also comes following last month’s update that Vornik would be stepping down after 11 years in the role, while James would be retiring from the board in May.
In the same announcement, chief product officer Angus Bean was named as Vornik’s successor, effective immediately, with the outgoing chief executive to stay on as an advisor for the next three months. Former Magellan chair Hamish McLennan was also appointed as independent chair-elect.
On that day, shares in the ASX defence tech company slumped 17 per cent on the news, despite being paired alongside a strong trading update.
In the statement from 9 April 2026, DroneShield reported March quarter revenue of $63 million, up 87 per cent year-on-year, alongside record quarterly cash receipts of $77 million. It added that total committed revenue was at $140 million for the first three months of the year.
