Australian defence technology company DroneShield has moved to calm investor panic after its chief executive and directors executed a stunning $70 million share sell-off, triggering a massive stock price collapse.
Executive Exodus from Share Registry
Revealed in ASX filings late Wednesday, the extraordinary divestment saw DroneShield chief executive Oleg Vornik sell his entire shareholding in the company, realising $49.5 million between November 6 and November 12. He was not alone in the exit.
Company chair Peter James and fellow director Jethro Marks joined the sell-off, disposing of all their shares during the same period for $12.3 million and $4.9 million respectively. The coordinated move immediately raised alarm bells across the market.
Market Backlash and Regulatory Scrutiny
The reaction was swift and brutal. On Thursday, DroneShield shares were hammered, plunging more than 30% in a devastating rout. The stock finished $1.03 lower at $2.25 amid a deluge of selling, becoming the S&P/ASX 200's most heavily traded stock with 89.6 million shares changing hands.
Responding to an ASX query about the dramatic price dive, the company conceded that "based on investor feedback … the recent trading may have been in response to the disposal of shares by directors."
The sales could potentially face regulatory scrutiny. This follows conflicting announcements from DroneShield on November 10, where the company first trumpeted $7.6 million of new contracts with the US Government, only to retract the statement hours later, claiming it was issued by mistake and the contracts were not new. At least some of the director share sales occurred between these conflicting announcements.
Company's Defence and Future Outlook
Three hours after its initial response to the ASX, DroneShield attempted to reassure the market. In a statement signed by CEO Oleg Vornik, the company insisted the sales did not reflect any change in the directors' belief in the company's future.
"Yesterday's change of directors' interest notices are unrelated to the growth trajectory of the company, which remains strong," the statement read. "Directors have retained a stake in the company through vested options as they have done in the past when disposing of shares acquired on exercise of options. The board and executives remain fully committed to the success of the company."
Following the sales, Mr Vornik retains more than 900,000 performance options, Mr James holds 250,000, and Mr Marks has 40,000.
Despite Thursday's dramatic plunge, DroneShield remains one of the ASX's standout performers of 2025. The company, which produces Artificial Intelligence-based counter-drone platforms, has capitalised on soaring global defence spending driven by increasing geopolitical tensions. Even after the sell-off, the stock is still up 200% for the year.
