Orbital UAV Raises $3M to Capitalize on US Drone Policy Shift
Orbital UAV secures $3 million through a share placement to boost manufacturing capabilities and expand business development amid new US drone market opportunities.
- Placement of ~14.2 million shares at $0.21 each raising $3 million
- Funds allocated to manufacturing upgrades including 3D printing and 5-axis milling
- Increased business development focus in US, Asia Pacific, and Middle East
- Strategic response to US Drone Dominance Policy with accelerated product development
- New leadership appointments driving product and market repositioning
Capital Raising to Fuel Growth
Orbital UAV, a specialist in propulsion systems for military drones, has announced a $3 million capital raise through the issuance of approximately 14.2 million new shares priced at 21 cents each. This placement, supported by both new institutional and existing sophisticated investors, is designed to underpin the company’s next phase of growth and strategic execution.
The funds will primarily upgrade Orbital UAV’s internal manufacturing and testing capabilities, including investments in advanced 5-axis milling and metal 3D printing technologies. These enhancements aim to reduce component costs and accelerate product development cycles, critical factors in maintaining competitiveness in the fast-evolving UAV sector.
Expanding Global Footprint
Beyond manufacturing, Orbital UAV is ramping up its business development efforts across key regions. Approximately $300,000 of the proceeds will support the recent appointment of Steven Osborne as Business Development Manager for the US and Europe, alongside ongoing activities in the Asia Pacific and Middle East. This geographic diversification aligns with the company’s ambition to capture emerging opportunities in both military and commercial drone markets.
Leveraging US Drone Dominance Policy
A significant driver behind this capital raise is the US Drone Dominance Policy, launched in June 2025. This policy aims to accelerate American leadership in UAV technology, with substantial federal funding and regulatory changes fostering a protected and expanding market for domestically sourced drone components. Orbital UAV’s dual production facilities in Australia and Oregon position it well to capitalize on these developments, particularly as the policy mandates bans on adversary-state vendors and prioritizes trusted suppliers.
The company plans to allocate $500,000 towards accelerated product development to seize opportunities arising from this policy, which forecasts a multi-billion-dollar market expansion in both military and commercial UAV segments by 2032.
Leadership and Strategic Direction
Under the guidance of newly appointed CEO Stephen Pearce, Orbital UAV is reshaping its product portfolio and targeting high-end Tier 1 commercial UAV markets. Chairman Kyle Abbott emphasized the company’s disciplined approach to market opportunities and the goal of increasing shareholder value through these strategic initiatives.
Peloton Capital acted as lead manager for the placement, reflecting strong market confidence in Orbital UAV’s growth trajectory and strategic positioning.
Bottom Line?
Orbital UAV’s capital raise sets the stage for accelerated growth, but execution on manufacturing upgrades and market expansion will be key to unlocking value.
Questions in the middle?
- How quickly will manufacturing upgrades translate into cost savings and faster product cycles?
- What specific contracts or partnerships might emerge from the US Drone Dominance Policy opportunities?
- How will the company balance growth ambitions with potential risks from geopolitical and regulatory shifts?
