ACT-based military drone target systems company Boresight has issued a prospectus to raise around $8 million and list on the ASX.
According to Boresight, the IPO is being launched at a defining moment for the Australian defence industry with the federal government’s updated Integrated Investment Program committing $12-$15 billion to drone and autonomous systems through to 2036.
The company raised $1.2 million in a March pre-IPO capital raising round after changing its status from a private to public company.
Boutique financial services firm ARQ Capital acted as joint lead manager in the pre-IPO raising after acting in a similar capacity to raise $1.5 million in a seed-round in December.
Perth-based CPS Capital is the lead manager for the IPO raising, while ARQ is continuing as corporate adviser.
A total of 40,000 new shares are to be issued in the IPO at 20 cents each implying a current market capitalisation of around $41.8 million.
Boresight managing director Justin Olde said: “Our plan with the funds is to invest in some new manufacturing capability and some more people. We are going to expand the facility we have here in Fyshwick, lease a new larger facility in Huntsville, Alabama, and increase our preclusion capacity there.”
Olde has been with the company since 2022. Prior to that, he was an executive with another defence sector company Electro Optic Systems (ASX: EOS) for more than four years. Other directors are: co-founder Michael Sinkowitsch, a former Australian Army officer, non-executive chair, UK-based Dr Andrew Windsor and non-executive director Perth-based Blake Burton.
When the prospectus was issued on 17 April, Sinkowitsch held 23.53% of the company, Windsor held 21.71% and Burton 0.36%. Old did not hold any share but held more than 8 million options while Sinkowitsch and Windsor each held 3.2 million and Burton 1.2 million. Around a quarter of the company is held by Canberra-based defence and intelligence company Criterion Solutions, a company in which Sinkowitsch and Windsor are directors and shareholders.
Boresight was spun out of Criterion in 2020.
In its prospectus, Boresight says it delivers to customers an integrated target drone ecosystem that enables realistic counter-uncrewed aerial systems (C-UAS) training and testing for defence forces. The company’s systems combine attritable aerial target drones, mission planning software and scalable ground control systems to support threat emulation and operational readiness. The platform range includes quadrotor and fixed-wing aerial target drones. The platforms enable repeatable training scenarios without risking high-value camera drone assets.
Boresight is also developing sophisticated camera drones.
The company recently reported that it had sold more than 5,000 units over the past five years. Conflicts in Ukraine and the Middle East have sharpened international focus on drone defence systems and on training in the use of such systems.
The company offers a range of systems including quadrotor and fixed-wing aerial targets that are designed to replicate evolving drone threats and enable repeatable training scenarios without risking high-value intelligence, surveillance and reconnaissance (ISR) assets.
“Every Counter-UAS system in the world needs to be tested against realistic drone targets before it can be deployed,” Olde said recently.
“And every soldier operating that system needs to train against the real threat. You cannot train effectively against a threat you have never seen fly.
“Boresight provides cost effective targets, and an easy-to-use ground control system – and that enables the consistency, repeatability and reliability that military training demands.”
Boresight has sold its systems to eight defence forces around the world – including those of Australia, Canada and New Zealand – as well as four of the six branches of the US Armed Forces. The company has also made sales to Norway and United Arab Emirates but US sales make up half of its revenue.
Boresight has two employees currently working out of its Huntsville, Alabama facility and also has a footprint in the UK to support its international sales.
In 2022 Boresight received government $1.28 million in federal government funding “to develop affordable and expendable swarming aerial target drones with improvised or dedicated counter-small uncrewed aerial system capabilities”.
Image: A Boresight employee with one of the company’s drones.