DroneShield Limited (ASX:DRO) shares rose as much as 9% after its U.S. subsidiary gained access to a procurement vehicle. The stock reached a one-month high.
The vehicle runs for three years and has a ceiling of US$500 million. It is an Indefinite Delivery, Indefinite Quantity (IDIQ) agreement with the U.S. Department of Defence's Joint Interagency Task Force 401 (JIATF-401).
The Domestic Shield initiative gives U.S. government agencies a streamlined way to procure DroneShield's counter-unmanned aircraft systems (C-UAS) for homeland defense. It focuses on protecting critical defense infrastructure and other high-priority locations across the United States.
The agreement establishes a framework for future orders but does not guarantee any specific amount.