Ondas Holdings Announces Closing of $4.0 Million Registered Direct Offering

Rhea-AI Summary

Ondas Holdings Inc. (NASDAQ:ONDS) has closed a $4.0 million registered direct offering of 5,333,334 units, each comprising one common stock share and two warrants. The units were priced at $0.75 each. The Series A and B warrants, exercisable at $0.8073 per share, will be valid for 2.5 and 5.5 years, respectively, starting six months after issuance. Maxim Group acted as the sole placement agent. Ondas plans to use the net proceeds for working capital and general corporate purposes. The offering was made under an effective shelf registration statement, with a prospectus supplement filed with the SEC.

Positive

• Raised $4.0 million in gross proceeds
• Warrants provide potential for additional future funding
• Funds to be used for working capital and general corporate purposes

Negative

• Potential dilution of existing shareholders
• Low offering price of $0.75 per unit may indicate weak market perception
• Need for additional funding suggests potential cash flow issues

Financial Analyst

Ondas Holdings' $4.0 million registered direct offering is a double-edged sword for investors. On the positive side, it provides much-needed working capital, potentially extending the company's runway. However, the offering price of $0.75 per unit represents a significant discount to recent trading prices, indicating weak investor confidence.

The inclusion of warrants with an exercise price of $0.8073 per share could lead to future dilution if exercised. This structure suggests the company struggled to raise capital through more traditional means. The low offering price and warrant inclusion point to financial stress and may pressure the stock in the short term.

Investors should closely monitor Ondas' cash burn rate and progress in its industrial wireless and drone businesses to assess if this capital infusion will be sufficient to reach profitability or if further dilutive offerings may be necessary.

Tech Industry Analyst

Ondas Holdings' capital raise reflects the challenging environment for small-cap tech companies, especially those in emerging sectors like industrial IoT and commercial drones. The company's focus on private industrial wireless networks and automated data solutions positions it in high-potential markets, but these are still maturing.

The $4 million raised, while modest, could be important for product development and market penetration. However, it's essential to see how Ondas allocates these funds between its Ondas Networks and Ondas Autonomous Systems units. Investors should watch for concrete progress in customer acquisitions and revenue growth to justify this dilutive financing.

The tech landscape is rapidly evolving and Ondas' success will depend on its ability to innovate and scale efficiently in the face of larger, well-funded competitors. This funding round buys time, but execution is now paramount.

MARLBOROUGH, MA / ACCESSWIRE / August 30, 2024 / Ondas Holdings Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of private industrial wireless networks and commercial drone and automated data solutions through our Ondas Networks and Ondas Autonomous Systems (OAS) business units, today announced that it has closed its previously announced offering of 5,333,334 units of the Company, with each unit consisting of one share of common stock, one Series A warrant to purchase one share of common stock, and one Series B warrant to purchase one share of common stock. Each unit was sold at a public offering price of $0.75, for gross proceeds of $4.0 million (the "Offering"), before deducting commissions and offering expenses. The warrants have an exercise price of $0.8073 per share, will be exercisable six months from the date of issuance, and in the case of the Series A warrant, will expire on the two and one half-year anniversary from the date of issuance, and in the case of the Series B warrant, will expire on the five and one half-year anniversary from the date of issuance.

Maxim Group LLC acted as the sole placement agent for the Offering

Ondas currently intends to use the net proceeds from the Offering for working capital and general corporate purposes.

The Offering was made pursuant to an effective shelf registration statement on Form S-3, as amended, (File No. 333-276852) previously filed with and subsequently declared effective by the U.S. Securities and Exchange Commission ("SEC") on February 15, 2024. A prospectus supplement relating to the securities issued in the Offering has been filed by the Company with the SEC. Copies of the prospectus supplement relating to the Offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or by telephone at (212) 895-3745.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Ondas Holdings Inc.

Ondas Holdings Inc. ("Ondas") is a leading provider of private wireless data solutions via Ondas Networks Inc. ("Ondas Networks") and commercial drone solutions through Ondas Autonomous Systems Inc. via its wholly owned subsidiaries American Robotics, Inc. ("American Robotics" or "AR") and Airobotics LTD ("Airobotics"), which we operate as a separate business unit called Ondas Autonomous Systems.

Ondas Networks is a developer of proprietary, software-based wireless broadband technology for large established and emerging commercial and government markets. Ondas Networks' standards-based (802.16s), multi-patented, software-defined radio FullMAX platform enables Mission-Critical IoT (MC-IoT) applications by overcoming the bandwidth limitations of today's legacy private licensed wireless networks. Ondas Networks' customer end markets include railroads, utilities, oil and gas, transportation, aviation (including drone operators) and government entities whose demands span a wide range of mission critical applications.

Our Ondas Autonomous Systems business unit designs, develops, and markets autonomous drone solutions via the Optimus System™ - the world's first FAA certified small UAS (sUAS) developed for aerial security and data capture and the Iron Drone Raider™, a counter-drone system designed to protect from the growing threat of hostile drones. The Optimus and Iron Drone Raider platforms are highly automated, AI-powered drone systems capable of continuous, remote operation and are marketed as "drone-in-a-box" turnkey security and data solution. They are deployed for critical defense, industrial and government applications where security, data and information collection and processing are required. American Robotics and Airobotics have industry leading regulatory successes which include a first of its kind FAA Type Certification for the Optimus System and having the first drone system approved by the FAA for automated operation beyond-visual-line-of-sight (BVLOS) without a human operator on-site.

Ondas Networks, American Robotics and Airobotics together provide users in defense, homeland security, public safety and other critical industrial and government security and infrastructure markets with improved connectivity, situational awareness and data collection and information processing capabilities.

For additional information on Ondas Holdings, visit www.ondas.com or follow Ondas Holdings on X formerly known as Twitter and LinkedIn. For additional information on Ondas Networks, visit www.ondasnetworks.com or follow Ondas Networks on X and LinkedIn. For additional information on American Robotics, visit www.american-robotics.com or follow American Robotics on X and LinkedIn. For additional information on Airobotics, visit www.airoboticsdrones.com or follow Airobotics on X and LinkedIn.

Information on our websites and social media platforms is not incorporated by reference in this release or in any of our filings with the U.S. Securities and Exchange Commission.

Forward Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the expected use of proceeds of the Offering. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Holdings Inc.
888.350.9994
ir@ondas.com

Media Contact for Ondas

Preston Grimes
Marketing Manager, Ondas Holdings Inc.
preston.grimes@ondas.com

SOURCE: Ondas Holdings Inc.

View the original press release on accesswire.com

FAQ

What was the size of Ondas Holdings' (ONDS) recent offering?

Ondas Holdings (ONDS) closed a $4.0 million registered direct offering of 5,333,334 units, priced at $0.75 per unit.

What does each unit in Ondas Holdings' (ONDS) offering consist of?

Each unit in Ondas Holdings' (ONDS) offering consists of one share of common stock, one Series A warrant, and one Series B warrant to purchase common stock.

What are the terms of the warrants in Ondas Holdings' (ONDS) offering?

The warrants have an exercise price of $0.8073 per share, are exercisable after six months, with Series A expiring in 2.5 years and Series B in 5.5 years from issuance.

How does Ondas Holdings (ONDS) plan to use the proceeds from the offering?

Ondas Holdings (ONDS) intends to use the net proceeds from the offering for working capital and general corporate purposes.