Why the DroneShield (ASX:DRO) share price shot up 10% today // Motley Fool Australia

The DroneShield Ltd (ASX: DRO) share price is climbing higher after announcing a new research & development (R&D) contract today.

In mid-morning trade, shares in the defence contractor shot up 10.5% to a high of 21 cents, before retreating slightly to 20 cents at the time of writing. In comparison, the All Ordinaries Index (ASX: XAO) is flat at 6,617 points.

Let’s take a look at what exactly is fuelling the DroneShield share price rise.

New contract win

DroneShield advised that it received an R&D contract related to its artificial intelligence/machine learning algorithms.

The company did not reveal which country placed the order, but said that it was from a defence department of a ‘Five Eyes’ country. The term ‘Five Eyes’…