Australian stocks move sharply as DroneShield plunges over 16% due to regulatory investigation over disclosure and insider trading concerns

Glonghui, May 12 — In the Australian market, DroneShield (DRO) shares plunged more than 16% intraday, marking a new low since late February this year. The company stated that Australia's financial regulatory authorities are reviewing the company’s disclosure information and stock trades since November. According to documents submitted to the exchange on Tuesday, the company said it had received a notice from the Australian Securities and Investments Commission (ASIC), requesting assistance with an investigation into market announcements released from November 1 to 20. ASIC will also investigate DroneShield stock trading from November 6 to 12. These dates coincide with a series of executive share sale announcements, including sales by then CEO Oleg Vornik and then chairman Peter James. These disposals triggered the largest sell-off in DroneShield’s history. The timing of the executive share reductions caused intense investor outrage, as the sales happened just after a mistaken announcement regarding a new contract. With the ASIC investigation underway, the company’s recent efforts to dispel doubts related to the events of November last year have become more complicated. Subsequently, DroneShield appointed Angus Bean and Hamish McLennan to replace Vornik and James, respectively. In addition, the company has established a mandatory minimum shareholding policy for all directors and executives, requiring the CEO to hold shares worth at least 200% of their annual salary.