May 12, 2026 — 12:36pm
The corporate watchdog has launched a formal investigation into DroneShield, scrutinising the ASX-listed drone ‘gun’ company’s disclosures about a $67 million share sell-off by its former chief executive and two directors that wiped more than 30 per cent from its share price last November.
DroneShield told the market on Tuesday morning that the Australian Securities and Investments Commission had issued a notice requiring it to provide reasonable assistance with an investigation under the Corporations Act, relating to announcements and share trading in November last year.
The moves pushed DroneShield’s shares down as much as 15 per cent to $2.99 on Tuesday, capping a bad run for the company that had capitalised on renewed interest in defence stocks to skyrocket in value before losing about half of its value since its peak in October 2025.
DroneShield said in a statement to investors that “it is not clear what action, if any, may result from ASIC’s investigation”, which it said covered the specific periods when its former leaders sold shares. An ASIC spokesperson confirmed an investigation was ongoing but declined to comment further while the matter was active. DroneShield declined to add to its statement.
